Last checked at 
(Sharecast News) - Clothing and footwear online retailer N Brown said in an update on Thursday that product revenue for the third quarter totalled £150.2m, representing a 9.7% decrease compared year-on-year.
The AIM-traded firm said the decline was seen in both strategic brands, with a 7.9% drop to £111.4m, and in heritage brands, which saw a 14.7% decrease to £38.8m.
Financial services revenue also experienced an 8.5% decrease to £75.8m, resulting in a total group revenue of £226m, down 9.3%.
Despite the overall decline in revenue, N Brown reported a continued improvement in its product revenue trend during the quarter, consistent with the progress noted in the interim results.
It said the improvement reflected better performance in the clothing and footwear, as well as the home segments.
Notably, certain categories including third-party branded womenswear and lingerie, beauty, gaming consoles, and the premium own-brand Anthology delivered strong performances.
Higher average item values were driven by pricing discipline and product mix, though lower consumer confidence and marketing investment choices led to lower volumes.
N Brown also reported that its partnership with Sainsbury's online clothing platform, particularly the launch of Simply Be, was performing strongly in its debut year.
Despite cost of living pressures on customers, the debtor book continued to perform as expected, supported by ongoing credit scoring assessments.
The company said it was actively investing in its transformational priorities, with a focus on enhancing the customer experience.
That included the successful launch of the new Jacamo website, which resulted in increased site speeds and a 20% boost in sales conversion rates.
N Brown said it was planning to further enhance the customer experience in 2024 with the introduction of the new JD Williams website and the implementation of technologies like a product information management (PIM) system to improve product descriptions and reduce returns.
The company reported a net promoter score (NPS) of 64 for the third quarter, reflecting an 11-point improvement from the previous year, which it put down to better delivery performance and overall customer experience enhancements.
It also received the Drapers Award for Diversity and Inclusion during the period.
With a strong focus on building resilience, N Brown highlighted its proactive management of stock intake and clearance of older items, resulting in a cleaner stock position.
The company also mentioned a strong balance sheet, with total accessible liquidity exceeding £150m as of 6 January.
Looking ahead, N Brown said it expected 2024 adjusted EBITDA to remain unchanged, with softer revenues offset by margin discipline.
Adjusted net debt was set to improve, falling below £260m by the end of the financial year, while maintaining a strong unsecured net cash position.
"We are pleased with the progress we have made in transforming the business, the resilience built through our strong balance sheet, and that our full year EBITDA expectations are on track," said chief executive officer Steve Johnson.
"Building on what's been achieved in the last 12 months, we continue to make progress on our strategic transformation, with the launch of the new Jacamo website another recent milestone.
"2024 will be about further improving the customer experience and positioning the business for future growth, with scheduled launches of the new JD Williams website as well as our product information management system, which will ensure our customers have better product descriptions to inform their purchases."
Johnson said the company's strong liquidity position provided a solid base for continued investment in its strategic priorities.
"I'd like to thank all our colleagues for their commitment during peak trading, and their continued hard work in progressing our transformation of the business.
"Change on this scale takes time and energy, but we are confident in our strategy and in building a stronger N Brown for all stakeholders."
At 1045 GMT, shares in N Brown Group were down 4.48% at 17.15p.
Reporting by Josh White for Sharecast.com.
