N Brown struggles over Christmas as cost-of-living pressures hit

No comments

N Brown has posted a drop in group revenue and product sales as cost-of-living pressures impacted shopper spending.

Simply Be N Brown Hirestreet

N Brown said performance was ‘solid’ for the tough trading environment

The fashion group reported a 7.6% drop in group revenue and a 9.2% drop in product sales over the crucial Christmas trading period.

The Jacamo and Simply Be owner said the performance was “solid” for the tough trading environment and in line with Q2 trends and expectations by management.

N Brown noted that shoppers had been more intentional with their discretionary spend over Christmas, with a focus on either the value or premium end of its ranges, and the impact of the cold weather had moved outerwear demand later in the season. Overall, however, its sales had been impacted by a soft and highly promotional market.

The retailer also warned that its net debt would be higher year on year after it reached a settlement with Allianz earlier this week, but said it was well covered by the gross debtor book.

N Brown chief executive Steve Johnson 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 macroenvironment over the next 12 months, we remain confident in the resilience of our business and in the strategic investments that 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 that we played in helping our customers look and feel amazing during Christmas.”