Supply chain disruption and higher return rates have hit influencer-led fashion brand In The Style's profits during the first half of its financial year despite a surge in revenue.
The Salford-headquartered company, which floated on AIM towards the start of 2021, has reported pre-tax profits of £890,000 for the six months to the end of September, down from the £1.8m it posted for the same period in 2020.
The firm's revenue however increased from £21.4m to £29.8m.
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Direct-to-consumer net revenue increased 23.4% to £23m while its wholesale revenue surged 138.7% to £6.9m.
During the period the company launched 10 new influencer partnerships, including singer and TV personality Stacey Solomon.
The results come after founder Adam Frisby announced he is to step down as chief executive and move to become the company's chief brand officer.
He will be succeeded as CEO by Sam Perkins, who joins from The Very Group, from January 17.
Mr Frisby said: "In The Style has continued to deliver very strong sales growth and strategic progress during the first half of the financial year.
"The business has continued to build on its exceptional growth in the prior year, despite the reopening of physical retail and lifting of social restrictions during the period, which reflects the strength of our brand and our truly differentiated influencer collaboration model.
"During the period we continued to expand the business with the launches of a number of exciting influencer partnerships, as well as successfully developing the group's growing wholesale channel through the launch of our partnership with Asda.
"Whilst the global supply chain and freight disruption that has impacted across the industry is expected to persist for at least the remainder of the year, we are pleased to report that the strong sales performance achieved during the first half has continued through Black Friday and into the festive trading period so far.
"With this momentum, coupled with recent investment into our scaled-up operational and senior management teams, we look forward to continuing In The Style's exciting growth and achieving our long-term vision for the brand."
