For the third quarter, N Brown Group plc reported 5.5 percent increase in revenues to 149 million pounds. Excluding the impact of the closure of the Figleaves website in March 2021, the company said, third quarter product revenue was slightly ahead of the prior year and FY22 year-to-date revenue was up 5 percent.
Commenting on the third quarter trading, Steve Johnson, N Brown’s chief executive, said: “Against the backdrop of Covid uncertainty, a volatile consumer environment and well-documented supply chain issues, the continued growth of our strategic brands has been particularly pleasing, as has a return to growth in active customers. Looking ahead, we will continue our strategic investment to transform the business, supported by a robust balance sheet and a strengthened executive team.”
N Brown sees revenue growth in clothing & footwear category
The company added that clothing & footwear continued its resurgence into Q3, with growth of 18 percent, including increased demand for dresses, formalwear and outerwear. This was offset by a reduction in home & gift of 19 percent where the company annualised against periods of high demand driven by lockdown in the prior year and saw a softer online home market than previously expected.
Total active customers have returned to year-on-year growth, reflecting both improved customer retention rates and new customer acquisition. Total active customers reached 2.91 million at the end of the period, with Simply Be and Jacamo at record levels.
N Brown appoints digital chief operating officer
The company further said that the executive management team has been refreshed over the last two years as the business continues its transformation. In November, the company appointed Nuno Miller to lead the technology teams.
Miller is overseeing the ongoing digital transformation across the Group including the development of new front-end websites. Miller joined from the multinational fashion group, Sonae Fashion, where he was the chief digital and information officer.
N Brown lowers outlook
Commenting on the outlook, the company said, Q3 strategic brands growth in the context of a softer online home market, resulted in FY22 year-to-date group revenue of negative 1.7 percent, which is behind previous expectations for the full year of broadly flat.
For full year FY22, N Brown expects to report adjusted EBITDA between 93 million pounds and 96 million pounds, which is at the lower end of our previously guided range, reflecting the online market conditions and a slightly higher level of project spend now being expensed rather than capitalised.
The company’s board remains confident in achieving the group’s medium-term objective of delivering sustainable profitable growth.