// N Brown posts falling revenues reflecting what it called “challenging online market conditions”.
// Adjusted profit before tax dropped 82.6% from £43m to £7.5m while product revenue fell 6.9% to £433m.
Simply Be and Jacamo owner N Brown has told investors that it expects the impact of high inflation and low consumer confidence to continue to impact trading next year, after posting a 82.6% fall in profit before tax.
The fashion group saw a 5.3% drop in revenues for the year down to £677.5m compared to £715.7m in the same period last year, as “challenging online market conditions” impacted its cost base.
Adjusted profit before tax dropped 82.6% from £43m to £7.5m while product revenue fell 6.9% to £433m.
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Adjusted EBITDA fell 39.7% to £57m- in line with the latest board and market expectations.
Looking ahead, the group is set to “continue strategic progress” said it wants to improve its bottom line moving further into clothing and has launched a new online mobile app for Simply Be, with more investment to come in FY24.
It will prioritise new websites for its brands Jacamo and JD Williams.
However, it warned that it expects further increases in adjusted operating costs to group revenue ratio in the next year, due to inflationary pressures particularly in administration and payroll costs.
N Brown chief executive Steve Johnson said: “We have remained adaptable to the trading environment which became more challenging during the year, as inflation impacted both our customers and our cost base. Although volumes softened, we maintained a disciplined approach to trading, with a particular focus on upholding margin despite a promotional backdrop.”
In a “strategic progress despite these challengers”, the firm has increased investment during the year and launched its new mobile-first website for Simply Be.
”We are expecting the weaker consumer confidence to continue weighing on our performance before we see a return to growth and are therefore keeping a tight control of costs. We remain confident in our strategy and are more focused than ever on the transformational priorities which will deliver the biggest benefits, including new websites for Jacamo and JD Williams, and the delivery of our new financial services platform,” Johnson added.
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