Retail shopping group N Brown has reported a decline in third quarter sales as it continued to transform the business and build resilience.
According to its latest trading update for the 18 weeks ended 6 January 2024, total third quarter sales were down 9.3% to £226m with product revenue also down 9.7% at £150.2m. Strategic brand sales declined 7.9% to £111.4m.
“The improving product revenue trend reported in the Group’s Interim Results on 12 October 2023 continued in Q3 (Q1: -11.9%; Q2: -10.4%; Q3: -9.7%),” the group stated. “This reflects an improvement in both our Clothing & Footwear and Home businesses in the quarter.
“We are continuing to invest in our transformational priorities, building on progress over the last 12 months. We expect to make further progress to enhance the customer experience in 2024, including the roll-out of the new JD Williams website and the addition of new technologies such as our Product Information Management (‘PIM’) system, enhancing product descriptions for customers to inform their purchases and which we expect will also lead to reduced returns.”
N Brown said its expectations for FY24 Adjusted EBITDA remain unchanged, with slightly softer revenues expected to be offset by further margin discipline.
Steve Johnson, Chief Executive, said: “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.
“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.”
