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Stock Analysis & ValuationIn The Style Group Plc (ITS.L)

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£0.78
Sector Valuation Confidence Level
Moderate
Valuation methodValue, £Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Method0.07-91
Graham Formulan/a

Strategic Investment Analysis

Company Overview

In The Style Group Plc (LSE: ITS) is a UK-based e-commerce womenswear fashion brand specializing in trendy, influencer-collaborated apparel. Founded in 2013 and headquartered in Salford, the company operates primarily through its proprietary e-commerce platform and mobile app, targeting young women seeking affordable, fashion-forward clothing. In The Style differentiates itself through exclusive collaborations with social media influencers, fostering strong brand engagement and a loyal customer base. The brand also partners with digital retail wholesalers to expand its reach across the UK, Europe, and select international markets. Operating in the highly competitive fast-fashion sector, In The Style competes with both pure-play e-commerce retailers and traditional brick-and-mortar brands. Despite challenges in the consumer cyclical space, the company leverages digital marketing and agile supply chains to stay relevant. Its asset-light model and focus on influencer-driven marketing position it uniquely in the specialty retail segment.

Investment Summary

In The Style Group Plc presents a high-risk, high-reward investment opportunity due to its niche positioning in the fast-fashion e-commerce market. The company's reliance on influencer collaborations and digital marketing provides scalability but also exposes it to shifting consumer trends and influencer volatility. With a beta of 3.032, the stock is highly sensitive to market movements, reflecting its speculative nature. The lack of disclosed revenue and profitability metrics (as of the latest filing) raises concerns about financial transparency. However, its asset-light model and strong digital presence could offer growth potential if it successfully navigates competition and cost pressures. Investors should weigh its innovative branding against sector-wide challenges like supply chain disruptions and declining discretionary spending.

Competitive Analysis

In The Style competes in the crowded fast-fashion e-commerce space, where differentiation is critical. Its primary competitive advantage lies in influencer collaborations, which drive brand loyalty and social media engagement—a strategy less emphasized by larger rivals. However, the company lacks the economies of scale of global players like ASOS or Boohoo, limiting its pricing power and supply chain efficiency. Its UK-centric focus also restricts international growth compared to competitors with broader geographic footprints. The absence of physical stores reduces overhead but limits omnichannel reach, a weakness compared to hybrid retailers like Next. Financially, undisclosed revenue and profitability metrics make it difficult to assess operational efficiency versus peers. The company’s agility in trend responsiveness is a strength, but reliance on third-party wholesale partners dilutes margin control. In The Style must balance influencer-driven exclusivity with scalable operations to withstand competition from deep-pocketed fast-fashion giants.

Major Competitors

  • Boohoo Group Plc (BOO.L): Boohoo is a larger UK-based fast-fashion e-tailer with a strong supply chain and multi-brand portfolio (including PrettyLittleThing). It outperforms In The Style in scale and international reach but faces criticism over ethical sourcing. Its aggressive pricing and frequent discounts pose a direct threat to In The Style’s niche positioning.
  • ASOS Plc (ASC.L): ASOS dominates the online fast-fashion space with a vast product range and global logistics network. Its tech-driven customer experience and owned-brand portfolio overshadow In The Style’s influencer focus. However, ASOS’s recent profitability struggles highlight sector-wide challenges In The Style also faces.
  • Next Plc (NXT.L): Next combines e-commerce with physical retail, offering a robust omnichannel advantage over In The Style. Its mature supply chain and strong private-label brands provide stability but lack the youth-centric, influencer-driven appeal of In The Style. Next’s financial resilience makes it a safer but less growth-oriented alternative.
  • Missguided (owned by Shein since 2022) (SHEL.L): Missguided, now under Shein’s ownership, leverages Shein’s ultra-fast fashion model and pricing power. This poses a significant threat to In The Style’s market share, though Shein’s controversies around sustainability and labor practices may create opportunities for In The Style to differentiate ethically.
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