By Christian Moess Laursen
N. Brown Group, the U.K. online retailer, announced a decrease in third-quarter revenue, though the decline was smaller compared to the previous two quarters. The company also confirmed its full fiscal-year guidance.
In the 18-week period ending on January 6, product revenue for N. Brown Group fell by 9.7% to £150.2 million ($190.4 million) compared to the third quarter of 2022. However, this represents an improvement from the drops seen in the prior two quarters, which can be attributed to advancements in both the clothing & footwear and home businesses.
Overall group revenue experienced a 9.3% decline, amounting to £226.0 million.
The company noted that average item values have remained high due to pricing discipline and product mix. However, lower consumer confidence led to a decrease in volumes.
N. Brown Group still anticipates that its full fiscal-year adjusted earnings before interest, taxes, depreciation, and amortization will align with market expectations, although specific figures were not provided. The expected slightly lower revenue will be offset by margin discipline, as stated by the company.
"While we acknowledge that macro-economic conditions impacting consumers will still affect our performance in 2024, we believe that conditions will gradually improve," the company expressed.
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