×
6 259
Fashion Jobs
NEW LOOK
Sales Manager
Permanent · LEEDS
EVERLAST GYMS
General Assistant - Everlast Gyms
Permanent · DUNSTABLE
HEAD OFFICE
Cyber Security Lead – Incident Response
Permanent · BRACKNELL
MATCHES FASHION
Accounts Receivable Manager
Permanent · LONDON
NEXT
Sales Manager - Southampton Hedgeend
Permanent · SOUTHAMPTON
WAITROSE
Chilled Warehouse First Line Manager – Nights
Permanent · AYLESFORD
MATCHES FASHION
Stock Coordinator
Permanent · LONDON
HOLLISTER CO. STORES
Hollister CO. - Graduate Manager in Training, George Street
Permanent · Edinburgh
HOLLISTER CO. STORES
Hollister CO. - Graduate Manager in Training, Braehead
Permanent · Renfrew
JOHN LEWIS
Section Manager Warehouse
Permanent · WEYBRIDGE
HARRODS
Concessions HR Manager
Permanent · LONDON
HARRODS
Stock Operative
Permanent · LONDON
HARRODS
Restaurant General Manager
Permanent · LONDON
HARRODS
CRM Executive Customer Data
Permanent · LONDON
OYSHO
New Store Opening - Oysho White City - General Manager
Permanent · LONDON
HARRODS
Uniformed Security Officer
Permanent · LONDON
HARVEY NICHOLS HEAD OFFICE
Ecommerce Director
Permanent · LONDON
NEXT
Sales Coordinator - Galashiels
Permanent · HUDDERSFIELD
SPORTS DIRECT
Loss Prevention Supervisor
Permanent · LEICESTER
SPORTS DIRECT FITNESS
Assistant General Manager - Everlast Fitness
Permanent · BURY ST EDMUNDS
SPORTS DIRECT FITNESS
General Assistant - Everlast Gyms
Permanent · BURY ST EDMUNDS
SPORTS DIRECT FITNESS
General Manager - Everlast Fitness
Permanent · RUGBY
Ads
Published
Oct 8, 2021
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

N Brown strategic brands focus pays off, minimises discounting

Published
Oct 8, 2021

N Brown seems to be on the recovery trail with the six-month results for the owner of the JD Williams, Simple Be and Jacamo brands showing “strong growth” for its strategic brands.


JD Williams



That said, on Friday, it reported that for the half-year to August 28, group revenue actually fell 01%, compared to the restated comparable period of the previous year, with a dip to £346.8 million. But that was due to a 5.7% drop in financial service revenues. Product revenues, by contrast, rose 3.3% to £222.1 million. And they helped adjusted EBITDA rise 10.4% to £53 million and pre-tax profit to double to £28.2 million.

The firm’s five strategic brands (the three mentioned above plus Ambrose Wilson and Home Essentials) actually managed to increase their revenues by 14.9% as the “benefits of transformation accelerate” with the weaker overall 3.3% increase being due to the firm’s “ongoing managed decline of legacy brands”.

The company has been stepping up its marketing activity to support its key brands, with the introduction of Amanda Holden and Davina McCall as brand ambassadors for JD Williams, being one of its highest-profile developments. And the retailer said the effectiveness of its marketing outreach (along with the benefits of improved product) was seen in Q2 with a 1.1% increase in active customers compared to Q1. The total number of active customers had actually fallen year-on-year by 5.7%, driven by the decline of those non-strategic brands so that Q2 rise was encouraging. And the half also saw the number of orders per customer increasing by 12.5%, as each customer shopped with the firm more frequently. Average order value also edged up.

To help all this, the company has also been implementing improvements in the digital experience — such as an improved customer checkout — and it has a new in-house studio that “significantly enhances its ability to create customised content”.

As for its outlook for the rest of the year, it’s interesting that the company said that “as a result of our improved product and branding, we have taken the decision to focus on profitable growth, rather than promotion-led sales”.

That approach reflects what we’ve heard from several firms recently and also the latest BDO High Street Sales Tracker. It  suggested on Friday that more retailers are selling products at full-price and therefore are less willing to get involved in heavy discounting. This may be a shock to some discount-driven consumers as the festive shopping season gets under way.

Regardless, N Brown now expects full-year product revenue up between 1% and 4%. 

CEO Steve Johnson said: “Over the last six months the consumer environment has been volatile. Nevertheless, momentum has continued throughout the business, with customers responding well to our improved product ranges; particularly across our five strategic brands. This is testament to the restructuring work we have done across the group and the investments we are beginning to make to support our refreshed strategy. 

“We continue to deliver on our plan and are feeling well prepared for peak trading. EBITDA remains in line with our expectations, and we are looking forward to exciting our customers with our new ranges as we head towards the Christmas peak. However, we do so with the backdrop of continued uncertainty around consumer confidence.”

Copyright © 2022 FashionNetwork.com All rights reserved.