N Brown Group reports a return to profit, overcoming revenue challenges.
- Profit before tax rose to £5.3m, reversing a previous loss of £71.1m.
- Revenue fell 9.8% amid challenging market conditions and a focus on profitability.
- CEO Steve Johnson outlines strategic investments, including new digital platforms.
- Confident outlook supported by consumer trends and planned marketing investments.
N Brown Group has successfully navigated a challenging fiscal year, emerging with a notable return to profitability despite a 9.8% decline in revenue. The company’s profit before tax reached £5.3 million, reversing a significant loss from the previous year. This turn-around is attributed to a strategic emphasis on profitable sales and reducing adjusting items.
CEO Steve Johnson highlighted that the group’s financial performance exceeded market expectations, specifically regarding Adjusted EBITDA, which saw a decrease of only 12.5% to £47.6 million. The adjusted profit before tax notably surged by 171.4%, reaching £13.3 million, largely due to impairment adjustments of non-financial assets in the previous financial year.
A key component of N Brown’s strategy has been the enhancement of digital platforms. The updated website for Jacamo has shown exceptional performance, with plans underway to expand these updates to Simply Be and JD Williams. This digital transformation is expected to enhance customer satisfaction and operational efficiency.
The full-year adjusted gross profit margin increased by 1.5 percentage points to 47.7%, buoyed by cleaner year-end stock positions, strategic focus on profitable sales, and reduced freight costs. Product margins were likewise up by 1.2 percentage points, reflecting these strategic business maneuvers.
N Brown has also focused on product innovation, with JD Williams launching its premium Anthology line and Jacamo expanding its brand with new smart casual and denim ranges. Meanwhile, Simply Be has introduced third-party sportswear brands such as Tala into its offerings, now also available in select Sainsbury’s stores.
Looking forward, N Brown has planned a £10 million increase in marketing investment for the current financial year, driven by internal cost efficiencies. CEO Johnson remarked on the favourable macroeconomic indicators, such as consumer confidence and spending patterns, which bolster the company’s optimistic outlook for the summer.
With strategic investments in digital transformation and marketing, N Brown Group is poised for growth despite current challenges.
