N Brown Group saw its FY24 revenue drop 9.8%, Dr Martens initiated a cost action plan to tackle its weakness in the US market during FY24. Shoe Zone ended H1 trading out of fewer stores but delivered a “very efficient returns process” which was complemented by its remaining store network.
N Brown Group ‘confident on strategy’ despite FY24 revenue fall
N Brown Group’s FY24 revenue was down 9.8% to £600.9m ($768.12m) from £666m the year before. The retailer which owns JD Williams, Simply Be and Jacamo brands saw its adjusted profit before tax rise 171.4% to £13.3m compared to £4.9m the year before. Its adjusted EBITDA was down to £47.6m from £54.4m, a drop of 12.5%.
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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.”
Looking ahead, he believes the company’s strong liquidity position allows for continued investment in its strategy and will position the business for sustainable growth whilst improving the customer experience.
N Brown Group expects gradual improvement in trading through FY25 with product revenue returning to a moderate level of growth, alongside a modest improvement in the rate of decline in financial services revenue and a group gross margin rate consistent with FY24.
Dr Martens FY24 revenue down on weak US demand
Dr Martens’ FY24 revenue declined 12.3% to £0.87bn ($1.11bn) from £1bn ($1.27bn) last year. Similarly, EBITDA fell 19.4% from £245m to £197.5m. The company’s profit after tax was reported at £69.2m, a decline of 46.3%.
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By GlobalDataBy region, EMEA revenue was down 3%. Similarly, Americas revenue declined by 24% driven by wholesale. In contrast, APAC revenue was broadly flat (down 7% or up 1% on a constant currency basis) and this was driven by good growth in Japan.
Dr Martens CEO Kenny Wilson believes the company needs to drive demand in the US market to return to growth in FY26 onwards. He said the company is executing a detailed plan to achieve this, with “refocused and increased US marketing investment” in the year ahead.
Wilson added: “We are also announcing a cost action plan across the group, targeting savings of £20m to £25m. I am confident that the actions we are taking as we enter this year of transition will put us in good shape for the years ahead.”
The company noted that its net debt increased to £357.5m (FY23: £288.3m) due to returns to shareholders, lower profits and increased lease liabilities.
Shoe Zone lowers FY outlook despite H1 revenue rise
Shoe Zone’s H1 group revenue for the 26 weeks to 30 March 2024 was up 1.5% to £76.5m ($97.74m) from £75.4m in the prior period. Store revenues decreased by £1.7m as the company traded out of 27 fewer stores than 12 months ago, while digital sales increased by £2.8m to £17.1m.
The company’s profit before tax was £2.6m, which was in line with management expectations for the period.
Shoe Zone said it delivered a robust performance against a continuing backdrop of consumer uncertainty and macroeconomic volatility with its chairman Charles Smith stating: “The performance further demonstrates the resilience of our business and the success of our ongoing strategy.”
Shoe Zone is continuing to accelerate its refit and relocation programme along with further investment in its digital and head office infrastructure. It said of these are key to its strategy, and it expects to spend £10m+ on capital projects this year and during each of the following two years.
The company has lowered its outlook by £1.4m to £13.8m for the full year due to the UK’s national living wage increasing to £11.44 per hour, which adds £0.4m to its costs in the second half of the year.
It also highlights the continuing disruption in the Middle East has increased shipping times and container prices, which adds a minimum of £0.5m of cost, and due to the large number of stores it has closed, particularly in Scotland.
Shoe Zone has provided for an additional £0.5m of dilapidations.
