N Brown Faces Q3 Revenue Decline of 9.3%, Shows Positive Product Revenue Trend

In a challenging quarter, N Brown reported a decline in its third-quarter revenues, with figures totaling 226 million pounds, representing a 9.3% decrease compared to the same period last year. The year-to-date revenues of 523 million pounds also saw a decline of 9.9%.

Despite the overall decrease, the company noted a positive trend in product revenues during the third quarter. The decline in product revenues stood at 9.7%, showcasing an improvement compared to the drops of 10.4% and 11.9% reported in the second and first quarters, respectively.

Steve Johnson, the Chief Executive Officer of N Brown, expressed satisfaction with the progress made in transforming the business, emphasizing the resilience built through a strong balance sheet. He also affirmed that the full-year EBITDA expectations remain on track.

The release highlighted that the improving trend was observed in both clothing & footwear and home businesses during the quarter. Notable strong performers included third-party branded womenswear and lingerie, beauty, gaming consoles, and the premium own-brand, Anthology.

In the partnerships segment, the launch of Simply Be on Sainsbury’s online clothing platform and selected stores showed robust performance in its inaugural year. Furthermore, the newly redesigned Jacamo website experienced a remarkable 20% increase in sales conversion rates, despite reduced promotional activity.

Looking ahead to 2024, N Brown has strategic plans to launch the new JD Williams website and incorporate new technologies, such as the product information management (PIM) system, aimed at minimizing returns.

While anticipating slightly softer FY24 revenues, the company aims to offset this through further margin discipline. Adjusted net debt is expected to improve compared to previous guidance, projected to be under 260 million pounds at the end of FY24, while maintaining a strong unsecured net cash position.