N Brown reports recovery in Q2 revenues

N Brown has reported a recovery in its first quarter sales due to a rise in demand for its new homeware range.

The group, which owns Jacamo, JD Williams and Simply Be, said product revenue for N Brown Group declined by 20.5% in the six months to 29 August 2020.

For the six months to 29 August, N Brown said 92% of all sales across its brand portfolio came through e-commerce.

The group reduced net debt by 17.3% in the half, to £411.1m. The company expects its year-end net debt to be in the range of £380m to £400m, as previously guided.

As of 29 August 2020, drawings under the group’s borrowing facilities remained at £455.9m, down from £544.6m at 29 February 2020. Net cash generation for the period was £45.3m, cash balances stood at £44.8m and the overdraft facility was undrawn.

N Brown said that in the second quarter of the year “revenue trajectory has continued to improve” from the “significant decline” at the beginning of the Coronavirus lockdown.

The recovery was driven by apparel sales, which N Brown said “continued to recover from mid-March levels”.

Chief executive at N Brown Group, Steve Johnson said: “It is encouraging to see a continued improving trend in trading following the sharp decline witnessed upon the initial impact of Covid-19, with trading in-line with expectations."

"Home and gift sales in the first half of our financial year have been particularly strong and our fashion brands continue to recover, particularly JD Williams and Jacamo. We have accelerated our digital transformation and 92% of our product revenue is now digital."

"Our financial services cash-collection rates have remained stable and we continue to offer support and flexibility to those credit customers who require it.  We will continue to implement our refreshed strategy, and particularly mindful of an uncertain UK retail environment, we will continue to focus on cost control, deleveraging and cash generation.”

N Brown will issue its full results for the six months to 29 August 2020 on 5 November 2020.