N Brown suffers festive sales slide and warns of stock delays

The fashion group posted an 8.8% decline in group revenue during the 18 weeks to January 2. Product sales were down 8.9% – compared with a 28.8% slump in its first quarter – while revenues raked in through its financial services division fell at the slower rate of 8.3%.

Sales at N Brown’s five biggest brands – JD Williams, Simply Be, Ambrose Wilson, Jacamo and Home Essentials – slipped 1.4% during the period. They had tumbled 25.1% during the first quarter of its fiscal year. 

The group said it benefited from “particularly strong demand” for computing, gaming and white goods during the golden quarter. Home and gift sales accounted for 42% of N Brown’s product revenue, compared with 32% during the same period last year.

N Brown said the performance was “in line with its expectations” and is forecasting an adjusted EBITDA of between £84m and £86m for its fiscal year.

However, it cautioned that the latest lockdown restrictions would “present opportunities and challenges” for the business.

N Brown said it was “experiencing delays of two to three weeks” for many of its stock deliveries, which it blamed on “global container issues, as well as cost pressure in the supply chain”.

It said it was “working through” those issues and would aim to “minimise the impact on customers”.

Chief executive Steve Johnson said: “We remain focused on our number-one priority of looking after our colleagues, whilst ensuring the business has the agility to respond to the ever-changing external environment and can continue to serve our loyal customers.

“We continue to move through the acceleration phase of our strategy; simplifying and strengthening our core brand proposition whilst improving our digital capabilities. This is generating continued momentum within the business, despite the difficult macroeconomic backdrop.”