// N Brown posts tumbling profits and falling sales as subdued consumer demand amid the cost-of-living crisis hits shoppers
// The retailer has revised its expectations for second-half product revenue and now expects it to decline in line with the year-on-year decline already seen
Simply Be and Jacamo owner N Brown Group has seen its first half revenues and profits fall and warned of further pressures amid the cost-of-living crisis.
In the 26 weeks to August 27, 2022, the Manchester-based retailer saw group revenues slip 4.6% to £331.5m, while pre-tax profits plunged 74.6% to £7.2m. However, the adjusted next debt was reduced from £268.3m a year ago to £243.5m.
As a result of macroeconomic uncertainty and inflationary pressures, N Brown has now revised its assumptions for second-half product revenue and now expects it to decline in line with the year-on-year decline seen in the second quarter and September.
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Chief executive Steve Johnson, said: “In a difficult period of weakening consumer confidence, we’ve balanced our objectives between disciplined trading – with a focus on upholding margin – and delivering on our long term strategy to transform the business.
“Our teams have worked relentlessly to launch Simply Be’s new website, and early indicators give us confidence in the wider benefits for all our customers when we roll this out more widely across our other strategic brands.”
He added: “We anticipate continued softness in trading over the second half as macroeconomic pressures continue to weigh on consumers, despite government support.
“We will, therefore, maintain our focus on tightly managing both our costs and margins. At the same time, given our ongoing confidence in our strategy and the strength of our balance sheet, we will continue to invest in our digital transformation to deliver sustainable profitable growth.”
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