N Brown Group revenue declined 1.8 percent to 715.7 million pounds for the year to February 26, 2022, as a result of a 0.6 percent decline in total product revenue and a 4 percent decline in financial services revenue.
However, adjusted pre-tax profit of 43.1 million pounds was up 46.6 percent from the previous year’s 29.4 million pounds and revenues across its strategic brands JD Williams, Simply Be, Jacamo grew by 10 percent.
Commenting on the company’s full year results, Steve Johnson, chief executive of N Brown, said: “Our strategic brands returned to growth in the year with growing customer numbers. We remain confident that over the medium-term our strategy will support the delivery of 7 percent product revenue growth with a 13 percent EBITDA margin.”
Review of N Brown’s full year results
The group’s total active customers grew for the first time in four years by 4 percent to 2.9 million.
Clothing and footwear mix increased during the year from 59 percent of product revenue in FY21 to 66 percent in FY22.
Driven by the growth in gross profit, adjusted EBITDA increased by 10.1 million pounds to 95 million pounds and adjusted EBITDA margin increased by 1.7ppts to 13.3 percent.
The company said that the trading environment has become more challenging since the start of FY23, with inflation impacting consumer confidence and resulting in a slightly softer level of volumes and revenue growth than previously anticipated.
The company’s board remains confident that over the medium term its strategy will support the delivery of 7 percent product revenue growth with a 13 percent EBITDA margin.