15th Jan 2021 10:48
(Alliance News) - N Brown Group PLC on Friday said the pace of annual revenue decline slowed in the third quarter, but the retailer warned that global container issues and other problems in its supply chain have caused stock delivery delays of up to three weeks.
Shares in the company were 14% lower at 63.90 pence each in London on Friday morning.
N Brown owns JD Williams, womenswear focused brands Simply Be and Ambrose Wilson, as well as menswear label Jacamo. Along with home goods arm Home Essentials, these make up N Brown's "strategic brands".
Revenue in the third quarter ended January 2 was down 8.8% annually, slowed from the second quarter's 13% fall and the 22% plunge in the first. The period included the crucial Christmas trading stretch.
Product revenue fell 8.9% year-on-year in the third-quarter.
For N Brown's five strategic brands - JD Williams, Simply Be, Ambrose Wilson, Jacamo and Home Essentials - there was just a 1.4% slip. However, other brands - which include online-focused Fashion World, plus Premier Man, House of Bath, Marisota, Oxendales, High & Mighty, Figleaves - saw a 26% third-quarter revenue plunge.
N Brown said it saw strong demand in computing as well as gaming during the third quarter. Computing sales more than doubled, while in gaming, there was a 50% rise.
"Within Apparel we saw strong growth in leisurewear and nightwear offset by a decline in dresses, formalwear and swimwear," N Brown noted.
Adjusted earnings before interest, tax, depreciation and amortization between GBP84 million and GBP86 million are expected for the full year, so roughly 20% down from GBP106.7 million.
"The latest lockdown restrictions will continue to present opportunities and challenges for the group," the company said.
"As with a number of other retailers, we are currently experiencing delays of two to three weeks for many of our stock deliveries, given global container issues, as well as cost pressure in the supply chain. We are working through the operational challenges which this presents us and looking to minimise the impact on customers."
By Eric Cunha; [email protected]
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