// N Brown has slashed its profit forecasts for the year
// It expects its full-year adjusted profit before tax to be in the range of £70m to £72m
// Product revenue dropped 4% in the 18 weeks to January 4
N Brown Group has issued a profit warning after enduring tough trading in the market which has seen its revenue decline.
The retail group, which owns Simply Be, Jacamo, Ambrose Wilson and JD Williams, has slashed its profit forecasts for the year.
N Brown now expects its full-year adjusted profit before tax to be in the range of £70 million to £72 million, down from the previous guidance of £78 million to £84.1 million.
During the 18 weeks to January 4, product revenue dropped by four per cent for the group after it was impacted by a 4.6 per cent decline in its financial services arm.
Meanwhile, online revenue increased by 2.5 per cent in the period, boosted by growth from Simply Be and Ambrose Wilson.
In December, N Brown named Daniel Joy as the new boss of its financial services arm. He joined office on January 6.
“Financial services revenue was down, reflective of our strategic approach to the retail business and continued tightening of our lending criteria,” N Brown chief executive Steve Johnson said.
“Our work so far has highlighted the need to have a tighter brand portfolio, a sharper focus on product and a cost base appropriate for delivering sustainable digital growth.
“At the same time, we will continue to proactively address the accelerating and cumulative external factors which are anticipated to reduce the size of our financial services business over the next two years.
“These will significantly influence the way we will operate our financial services business and we are taking proactive measures to ensure that the change is managed appropriately. This is in line with our strategy of becoming a digitally focused, retail-led business.
“Our expectations remain that the retail market will continue to be challenging and promotional, but we are focused on our clear strategy of delivering profitable digital growth.”