The UK retailer believes the Q3 FY24 revenues reflect an improvement in both its clothing and footwear, as well as Home businesses in the quarter. It added that strong performance was seen in categories including third-party branded womenswear and lingerie, beauty, gaming consoles and N Brown's premium own-brand, Anthology.
N Brown explained that average item values have continued to be higher, driven by pricing discipline and product mix, whilst volumes, as expected, reflect the continuation of lower consumer confidence and measured choices which the retailer has taken around margin, including the level of marketing investment.
Within partnerships, N Brown said the introduction of Simply Be on Sainsbury’s online clothing platform and selected stores is performing "strongly" in its first year, as well as providing enhanced exposure to different customer segments.
The UK retailer shared that following the successful launch of the new Jacamo website, customers are benefitting from faster site speeds, leading to around 20% increase in the sales conversion rate despite lower promotional activity.
In addition to this, N Brown is rolling-out the upgraded JD Williams website with tech enhancements such as Product Information Management (PIM) system which it says will improve product descriptions for customers to inform their purchases. It is expected to contribute to a reduction in returns.
Steve Johnson, chief executive of N Brown, expressed satisfaction with the advancements in reshaping the business, the resilience built through strong balance sheet, and confirmed that the full-year EBITDA expectations are on track.
He continued: "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. 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."
N Brown expects "slightly softer" F$24 revenues to be offset by further margin discipline. Adjusted net debt is anticipated to improve when compared to previous guidance and is expected to be under £260m at the end of FY24, whilst retaining a strong unsecured net cash proposition.
The retailer noted a modest increase in customer optimism during 2023 but anticipates that the macro-economic conditions experienced by consumers will continued to influence its performance in 2024. N Brown believes that conditions will gradually improve over the course of the year.
