N Brown Group reported its first quarter result for the 13 weeks ended 3 June 2023 with total group revenue down by 9.9% to £148.7m ($190.6m).
The multi-channel fashion retailer attributed this to the “softer product revenue” which was a result of poor early spring weather and low consumer confidence. This trend follows on from its fourth quarter results and is also outlined in its full-year update, which was released on 6 June.
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N Brown says the impact of these factors on volumes has been partially offset by higher average item values and adds: “We saw an improving product revenue trend across the quarter. As flagged in our FY23 preliminary results, we expect weak consumer confidence to continue through FY24 and are therefore taking a disciplined approach to managing costs and driving margin improvements whilst we invest in the business for medium-term growth.”
GlobalData analyst Pippa Stephens suggests N Brown needs to transform its brand image to regain its desirability amongst consumers.
She says: “N Brown has continued along its downward trajectory with revenue for the 13 weeks to 3 June 2023 falling by 9.9% to £148.7m, hindered by consumers’ lower discretionary spending and the dwindling relevance of its offering. While the decline of online pureplay rivals like ASOS and The Very Group can partially be blamed on shoppers’ return to stores, after they experienced a significant uplift during the pandemic, the same cannot be said for N Brown, which also saw sales decline throughout Covid-19.”
However, she adds, enhancing its product ranges to be more appealing and improving brand awareness through innovative marketing strategies would help N Brown to become relevant again.
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By GlobalDataN Brown’s chief executive Steve Johnson explains the company is focusing on transformational priorities that he believes will deliver the biggest benefits, including new mobile-first websites for its Jacamo and JD Williams brands, and the delivery of its new financial services platform.
Additionally, the retailer announced that its revolving credit facility and overdraft remain undrawn with a new extension of December 2026.
