N Brown revenues decline 10.4 percent

N Brown Group revenue contracted 10.4 percent to 297 million pounds, reflecting the challenging market conditions including unseasonable weather through spring and July to August.

The company witnessed trading during the first five weeks of the third quarter improve over the second quarter run rate.

While macro-economic challenges of a high inflationary environment and low consumer confidence are expected to persist throughout FY24, N Brown expects FY24 adjusted EBITDA to be in line with market expectations.

Commenting on the first half results, Steve Johnson, N Brown’s chief executive, said: “We expected external market conditions to remain soft and for the first half of FY24 to be particularly challenging. In response, we acted decisively to adapt to the trading environment and maintain real focus and discipline in areas which we can directly control, remaining on track to deliver full year adjusted EBITDA in line with the board’s expectations.”

Highlights of N Brown’s first half results

The company reported an improvement in product revenue trend in the second quarter, with a decline of 11.2 percent 187.5 million pounds in the first six months. Strategic brands were down 7.4 percent.

The company said in a release that lower retail sales and opening debtor book, resulted in lower FS revenue, down 9 percent to 109.5 million pounds.

Adjusted group gross profit margin increased 0.4ppts to 47.6 percent, while first half adjusted EBITDA was in line with board expectations at 17.5 million pounds, down 37.3 percent compared to the same period last year.

Adjusted profit before tax dropped to 0.1 million pounds compared to 4.3 million pounds in the previous year.