UK retailer N Brown's revenue falls in Q3 FY24

UK clothing and footwear digital retailer N Brown’s product revenue in the third quarter (Q3) of fiscal 2024 (FY24) totalled to £150.2 million, registering a 9.7 per cent decrease.

Despite an overall decline in revenue, N Brown has reported a sustained improvement in its product revenue trend for the quarter, aligning with the progress highlighted in the interim results. This positive trend is attributed to enhanced performance in both the clothing and footwear segments, as well as the home segment.

Average item values have continued to be higher, driven by pricing discipline and product mix, whilst volumes, as expected, reflect the continuation of lower consumer confidence and measured choices which we have taken around margin, including the level of marketing investment, the company said in a press release.

Within partnerships, the launch of Simply Be on Sainsbury’s online clothing platform and selected stores is performing strongly in its first year, as well as providing enhanced exposure to different customer segments.

“We are pleased with the progress we have made in transforming the business, the resilience built through our strong balance sheet, and that our full year EBITDA expectations are on track. Building on what’s been achieved in the last 12 months, we continue to make progress on our strategic transformation, with the launch of the new Jacamo website another recent milestone. 2024 will be about further improving the customer experience and positioning the business for future growth, with scheduled launches of the new JD Williams website as well as our Product Information Management system, which will ensure our customers have better product descriptions to inform their purchases. Our strong liquidity position provides a solid base for continued investment in our strategic priorities,” Steve Johnson, chief executive, said.

“I’d like to thank all our colleagues for their commitment during peak trading, and their continued hard work in progressing our transformation of the business. Change on this scale takes time and energy, but we are confident in our strategy and in building a stronger N Brown for all stakeholders,” added Johnson.

The expectations for FY24 adjusted EBITDA remain unchanged from those outlined in the interim results, with slightly softer revenues expected to be offset by further margin discipline. Adjusted net debt is anticipated to improve when compared to previous guidance and is expected to be under £260 million at the end of FY24, whilst retaining a strong unsecured net cash position.