N Brown said it was targeting sustainable growth after returning to statutory pre-tax profit despite sales falling nearly 10%.
The Jacamo and Simply Be owner returned to a pre-tax profit of £5.3m in the 52 weeks to 2 March, up from a loss of £71.1m the year before.
It came as group sales fell 9.8% to £600.9m, which it attributed to the “continued challenging market conditions”.
Product revenue plunged 10.6% to £381.2m, while financial services sales dropped 8.2% to £219.7m
Despite the “year of notable market softness”, N Brown said it delivered strong strategic and operational progress such as the launch of new product lines across strategic brands.
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This included Simply Be adding lifestyle sports brand Tala online and launching its own products inside Sainsbury’s stores, as well as Jacamo expanding its smart casual, denim and footwear ranges.
The online retail group said the rate of product revenue decline in the current financial year has moderated to down 6% in the first quarter. It expects to return to sales growth this year.
N Brown chief executive Steve Johnson said: “We have delivered against our strategic and financial objectives this year. We have kept to our transformation plans, despite the macro-economic backdrop, whilst building resilience through our strong balance sheet, and achieving adjusted EBITDA above market expectations.
“Our customers are now seeing tangible benefits from our transformation, with an enhanced experience being delivered by our new websites and our recently launched product information management system ensuring customers have more detailed product descriptions to inform their purchases.
“Looking ahead, our strong liquidity position allows for continued investment in our strategy, positioning the business for sustainable growth whilst always improving the customer experience.
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