N Brown has reported a sharp decline in profits after sales tumbled owing to the pandemic, but the fashion and homeware retailer’s boss pointed to “early signs of progress” in its turnaround.

Group pre-tax profits fell by 49.4% to £30.1m, in the 52 weeks to February 27 2021, down from £59.5m the previous year. 

Adjusted EBITDA dipped by 18.9% to £86.5m, although this was above the top range of its previous guidance. 

N Brown sales dropped sharply, with group revenues falling 13% year-on-year to £728m. The retailer, which owns the brands JD Williams, Simply Be, Jacamo, Home Essentials and Ambrose Wilson, said its projected revenue trajectory improved steadily throughout the year – product revenue fell 25% in Q1 but was down just 4.3% by Q4 – and added that since the beginning of the current financial year it had returned to sales growth. 

Despite what chief executive Steve Johnson called a year of “multiple challenges,” he said N Brown had made significant progress in its transformation. During its last financial year, the business raised £100m in equity to “accelerate strategic transformation and eliminate unsecured debt”. It also discontinued both its High & Mighty and House of Bath brands in 2020. 

N Brown’s leadership team underwent changes throughout the period, with the appointments of new chief financial officer Rachel Izzard in June 2020, and Sarah Welsh in the newly created role of retail CEO in March 2020. 

Johnson said: “In a year where we have all had to overcome multiple challenges, we have continued our transformation of the group through a relentless focus on our five strategic brands, improving our product offering and enhancing our digital capabilities, all of which will position us better with our target customers.

”Although we remain cautious, we are beginning to see some early signs of progress.”

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