N Brown Group sees Q3 revenue drop
N Brown Group, the owner of JD Williams, has reported a 7.6% decrease in revenue to £249.2 million for the 18 weeks ending 31 December 2022.
The group's product revenue dropped 9.2% to £166.4 million, reflecting a "soft and highly promotional" market. Within this, strategic brand revenue was down 5.5% to £120.9 million, whilst heritage brand revenue dropped 17.6% to £45.5 million.
N Brown Group said that the cost-of-living pressures continued to impact its customers during Q3. It added that customers have been "more intentional in their spend during the period, buying what they need or what they love, with a greater focus towards either the value or premium end of our ranges".
The group expects Q4 to be "softer" than Q3, in what N Brown says are typically the quietest months of the year. It also expects the market for UK discretionary consumer goods to be soft in 2023, particularly in the first half. This, together with the difficult trading environment in FY23, means the group expects to commence FY24 with lower active customers year-on-year.
Against this backdrop, N Brown said it will continue to carefully monitor consumer credit conditions whilst maintaining its focus on self-help measures through tightly managing both costs and margins, and continuing to invest in and deliver strategic change.
Steve Johnson, CEO of N Brown Group, said: “We have traded in line with our expectations through a challenging period, as customers continue to be more cautious with their discretionary spending in the face of the various, well-documented consumer pressures.
"Although we are cautious about the macro environment over the next 12 months, we remain confident in the resilience of our business and in the strategic investments which we are making for the long term. With many returning to festive activities for the first time in three years, we’re proud of the role which we played in helping our customers look and feel amazing during Christmas.”