N Brown Group revenue drops due to 'challenging' trading environment
N Brown Group, owner of JD Williams, has released its trading update for the 13 weeks ending 28 May 2022, revealing a 2.1% decrease in group revenue to £165.1 million.
In the first quarter, N Brown Group shared the following results:
- 0.6% decrease in product revenue to £106.3 million.
- Clothing & Footwear represented 71% of total product revenue.
- 2.5% increase in revenue from strategic brands to £75.2 million.
- 7.2% decrease in revenue from heritage brands to £31.1 million.
The group attributes its Q1 performance to a challenging trading environment since the start of FY23, with inflation impacting consumer confidence, resulting in softer volumes and revenue than anticipated at the start of the year.
Looking ahead, N Brown Group "remains confident" that its strategy over the medium term will support the delivery of 7% product revenue growth, with a 13% EBITDA margin.
Steve Johnson, CEO at N Brown Group, said: “Sales volumes since the start of the financial year have been softer, reflecting various well-documented pressures on consumer confidence, which are showing no signs of abating in the short term. As these pressures persist, we expect the trading environment to remain challenging and will, therefore, continue to take actions to mitigate the effects wherever possible.
"Despite this uncertain backdrop, the board remains confident in the group’s strategy and achieving its medium-term objective of delivering sustainable profitable growth.”