N Brown Group "pleased with progress" in Q3 trading update

N Brown Group, the owner of JD Williams, Simply Be and Jacamo, has reported a 9.3% decrease in revenue to £226 million for the 18 weeks ending 6 January 2024.

However, the improving product revenue trend reported in the group’s interim results on 12 October 2023 continued in Q3 to -9.7%, following -10.4% in Q2 and -11.9% in Q1.

This reflects an improvement in the group’s clothing, footwear and home businesses, driven by categories including third-party branded womenswear and lingerie, beauty, gaming consoles and the company’s premium own-brand, Anthology.

Average item values have continued to be higher, helped by pricing discipline and product mix, while "volumes reflect the continuation of lower consumer confidence and measured choices".

Other highlights include:

• FY24 Adjusted EBITDA guidance remains unchanged.
• Ongoing investment in transformational priorities with further progress expected in 2024.
• Strong balance sheet, with total accessible liquidity of over £150 million.

Following the launch of the new Jacamo website, sales conversion rates increased by around 20% despite lower promotional activity, with customer benefitting from faster site speeds.

Further progress to enhance customer experience is planned in 2024 with the roll-out of the JD Williams website and the addition of new technologies such as the Product Information Management (PIM) system. This system, which will enhance descriptions for customers to inform their purchases, is expected to lead to reduced returns.

Steve Johnson, CEO of N Brown Group, said: "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.

"Building on what’s been achieved in the last 12 months, we continue to make progress on our strategic transformation.

"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."

Adjusted net debt at 6 January 2024 of £246.1 million has reduced from the 4 March 2023 position of £297.4 million, and is now under half of the peak level of adjusted net debt reported at the FY20 year-end (£497.2 million), despite a £49.5 million payment made to Allianz in January 2023.