N Brown is relying on “technology upgrades” to boost dipping revenues

N Brown Group, which boasts a portfolio made up of Jacamo, JD Williams and Simply Be, has revealed its H2 2024 financial report for the 26 weeks ending 2 September 2023.

The company reported that revenues were "in line with Board expectations". Revenues were down by 10.4% year-on-year, from £331.5 million to £297 million. This is due to the "challenging market conditions including unseasonable weather through Spring and July to August".

For the first half of the year, the adjusted group gross profit margin increased 0.4 ppts to 47.6. Meanwhile, the product margin rate continued to improve, which was up 1.6 ppts.

Adjusted EBITDA fell in line with the board’s expectations, despite continued macroeconomic challenges such as softer trading and higher costs. Adjusted profit before tax stood at £0.1 million, down by 97.7% from the year prior.

Looking ahead to the fiscal year 2024, adjusted EBITDA is expected to be marginally higher than the fiscal year 2023. N Brown has "confidence" in its strategic direction with a strong emphasis on its digital transformation.

The company has set out key areas of focus to deliver sustainable and profitable growth:

• Build a differentiated brand portfolio
• Elevate the fashion and fintech proposition
• Transform the customer experience
• Win with its target customer
• Establish data as an asset to win

Steve Johnson, Chief Executive of N Brown Group, said: "We expected external market conditions to remain soft and for the first half of FY24 to be particularly challenging. In response, we acted decisively to adapt to the trading environment and maintain real focus and discipline in areas which we can directly control, remaining on track to deliver full-year adjusted EBITDA in line with the Board's expectations.

"Alongside this, we're pleased with the delivery of our strategy as we position the business for medium-term growth. Our investment across JD Williams, Simply Be and Jacamo has led to new commercial partnerships and technology upgrades to drive performance. We have a clear set of transformational priorities in train and expect to continue to deliver further progress during the second half of the year.

"Good work by our teams, including more efficient stock management, has helped generate cash and further improve our liquidity position in the half, providing a solid base for the continued investment in our priorities."