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(Sharecast News) - Ladies fashion retailer N Brown posted a drop in annual profit and revenue on Thursday following a year of restructuring, but said trading has started to improve following the significant deterioration seen in March as the Covid-19 lockdown was imposed.
In the year to 29 February, adjusted pre-tax profit fell 28.8% to £59.5m on revenue of £858.2m, down 6.1% on the previous year. Adjusted earnings per share declined 23.4% to 16.37p.
The Simply Be and Jacamo owner put the drop in profit down to lower gross profit and increased net finance costs.
In what it described as "a critical year for the group's transition to digital", 85% of product revenue was generated through digital channels, an increase of 6 percentage points on 2019.
The company said revenue slumped 22% in the first quarter of this financial year, with product sales down 28.8% and financial services revenue 8.3% lower as it felt the impact of the coronavirus lockdown. However, "trading has continued to improve from the sudden and significant decline experienced in March", it said, with an improvement in sales and cash collections stable.
Chief executive Steve Johnson said: "In a year of restructuring for the group, Simply Be, JD Williams, Jacamo and Ambrose Wilson all grew digital revenue and following further progress in the first quarter of this financial year, 91% of our product revenue now comes from digital channels.
"Challenges remain in the year ahead, but we are focused on accelerating the business and are confident we are taking the right actions to create a sustainable, profitable business for the long term which has the potential to generate significant value."
At 0855 BST, the shares were down 3% at 37.75p.
12 Jan 2023 15:18
IN BRIEF: N Brown bemoans "soft and highly promotional" retail market
N Brown Group PLC - Manchester-based clothing and footwear retailer whose brands include JD Williams, Simply Be and Jacamo - Provides Christmas trading update, saying revenue is down 7.6% on a year before in its financial third quarter, the 18 weeks to December 31, to GBP249.2 million. Product revenue is down 9.2% to GBP166.4 million, while Financial Services revenue is down 4.2% to GBP82.8 million. Total revenue in the first nine months of financial 2023 is GBP580.7 million, down 5.9% on a year before. N Brown says it expects the fourth quarter to be weaker than the third, based on seasonal patterns and amid a "soft and highly promotional market".
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