N Brown Group sees continued growth in Q3 due to strong performance in clothing and footwear
N Brown Group, owner of Simply Be and Jacamo, has reported group revenues in Q3 rose slightly by 3.3% year on year to £267.6 million, with product revenue up 3.5% and financial services revenue up 3%.
The group's Q3 product revenue growth was driven by its five strategic brands (JD Williams, Simply Be, Ambrose Wilson, Jacamo and Home Essentials) which grew 5.5% in the 18 weeks to 1 January 2022.
The group said the continued growth in the five brands is offset by the managed decline of other brands including Fashion World, Marisota and Oxendales, which now represent less than 20% of product revenue.
In Q3 FY22, clothing and footwear sales continued its resurgence into Q3, with demand for dresses, formalwear and outerwear increasing sales growth of 18%.
However, the home and gift category saw sales dip 19% as the company annualised against periods of high demand driven by lockdown in the prior year.
Commenting on the results, Steve Johnson, Chief Executive of N Brown Group, said: "The business has performed resiliently over the peak period and our colleagues have worked tirelessly to deliver for customers in challenging circumstances. Against the backdrop of Covid uncertainty, a volatile consumer environment and well-documented supply chain issues, the continued growth of our strategic brands has been particularly pleasing, as has a return to growth in active customers.
"We are now seeing more people than ever shopping with Simply Be and Jacamo. JD Williams is also resonating well with customers, particularly on the back of our successful partnerships with Amanda Holden and Davina McCall. We have continued to execute on our plan and, looking ahead, will continue our strategic investment to transform the business, supported by a robust balance sheet and a strengthened executive team.”
For full year FY22, the company expects to report adjusted EBITDA between £93 million and £96 million, which is at the lower end of previously guided range, reflecting the online market conditions and a slightly higher level of project spend now being expensed rather than capitalised.