×
4 520
Fashion Jobs
AESOP
Retail Consultant | Aesop Piccadilly Arcade, London | Full Time
Permanent · London
TK MAXX
Security And Loss Prevention Advisor
Permanent · Preston
TJX EUROPE
Brand & Marketing Administrator
Permanent · Grand Londres
TK MAXX
Loss Prevention Advisor - Glasgow And Surrounding Area - Full-Time- Permanent
Permanent · Glasgow
TK MAXX
Loss Prevention Officer - Permanent - 2 x pt 20hrs Bedford Town
Permanent · Bedfordshire
FARFETCH
Senior Performance Marketing Executive (DACH Region) – Affiliates And Growth Partner Marketing
Permanent · LONDON
RALPH LAUREN
Sales Professional
Permanent · London
RALPH LAUREN
Sales Professional
Permanent · London
ABERCROMBIE AND FITCH STORES
Abercrombie & Fitch - Brand Representative, Shepherd’s Bush (Westfield)
Permanent · London
ABERCROMBIE AND FITCH STORES
Abercrombie & Fitch - Brand Representative, Trafford
Permanent · Manchester
HOLLISTER CO. STORES
Hollister CO. - Brand Representative, Princesshay
Permanent · Exeter
MULBERRY
Warehouse Team Leader
Permanent · SHEPTON MALLET
MULBERRY
Senior Retail Operations Manager UK & Emea
Permanent · LONDON
H&M
Security Guard
Permanent · MILTON KEYNES
LOVISA
Regional Manager
Permanent ·
EVERLAST GYMS
Assistant General Manager - Everlast Fitness
Permanent · DENTON
EVERLAST GYMS
General Assistant - Everlast Gyms
Permanent · HALIFAX
FRASERS GROUP
Logistics Project Manager
Permanent · SHIREBROOK
FARFETCH
Service Desk Analyst
Permanent · LONDON
MULBERRY
Lawyer
Permanent · CHILCOMPTON
MULBERRY
Warehouse Administrator
Permanent · SHEPTON MALLET
HARVEY NICHOLS
Brand Consultant - Marcolin - 20 Hours
Permanent · LONDON
Ads
Published
Jun 25, 2020
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

N Brown to focus only on key labels as sales and profits fall, but recovery starting

Published
Jun 25, 2020

Fashion retailer N Brown’s full-year results and Q1 trading update on Thursday came with a refreshed strategy designed to return the firm “to sustainable growth” that will see the end of its smaller brands.


Simply Be



And the Simply Be, JD Williams, Ambrose Wilson and Jacamo owner certainly needs a new impetus to get back on track after a year in which revenue and profits fell and debt rose. And that’s even more the case after a quarter in which the lockdown sent its performance tumbling further.

First, the full year. In the 12 months to February 29, group revenue fell 6.1% to £858.2 million with product revenue down a wider 7.2% to £567.7 million (its other revenue from financial services when customers buy on credit). Adjusted EBITDA dropped 16.6% to £106.7 million and adjusted profit before tax was down 28.8% to £59.5 million.

It saw a “material increase” in statutory profit before tax to £35.7 million from a loss of £57.5 million a year earlier, but this was due to significantly lower exceptional charges rather than an improved performance.

And in the latest quarter, group revenue has fallen 22%, with product revenue dropping as much as 28.8%, although in the last three weeks there have been some signs of recovery with product sales down ‘only’ 21%. Apparel sales have started to recover from mid-March levels and demand for Home & Gift, supported by the launch of Home Essentials on April 1, “has remained well above the prior year”.  Product sales have been stronger in brands more resonant with younger customers (Simply Be is down just 16.2%) compared to its brands serving more mature customers (Ambrose Wilson is down 44.4%).

The last year was a critical one for the firm as it closed stores and moved to a mainly-digital focus and it said that 85% of FY20 product revenue was generated through digital channels, an increase of six percentage points. Within this, both womenswear and menswear were up 5.5%. Additionally, 98% of Simply Be revenues were digital, Jacamo was at 97%, JD Williams 81%, and Ambrose Wilson 60%. In the latest quarter, 91% of sales were digital.

The company has moved quickly to cut costs across the business and  while its debt rose during its last financial year, it has reduced its debt level by almost 10% since then.

And the refreshed strategy? There are five growth pillars that include: offering distinct brands to attract a broader range of customers; improved product to drive customer frequency; a new Home offering for customers to shop more across categories; enhanced digital experience to increase customer conversion; and flexible credit to help customers shop.

The company is now a top 10 UK clothing & footwear digital retailer and has been through a lot of change in recent years with its exit from stores and work done to identify the areas in which it’s been under-achieving.

Its digital capabilities have been enhanced, the executive and senior leadership team has been refreshed, with a clearer strategic focus and the cost base is “now more appropriate for a digital retailer, with further cost saving opportunities identified”.

Having come to the conclusion that it needs “distinct brands”, the question therefore is: what happens to its other brands such as Marisota and Fashion World? “Our other brands will either be folded into our main brands or closed down,” it said.

CEO Steve Johnson said the business has “responded strongly to the challenges posed by the Covid-19 outbreak, highlighting our resilience”. And he added that while “the crisis will cast a lasting shadow over the sector, we are confident that our agile approach and attractive brand offerings, with clear target customer segments, position us well to navigate the issues and emerge as a stronger business”.

Copyright © 2023 FashionNetwork.com All rights reserved.