N Brown, the online fashion group, remains confident as it enters the new year, despite a decline in sales, according to its recent trading update. The company has reported an improving trend in product revenue throughout 2023 and into Q3. While there were some negative figures in the report, such as a 9.7% decrease in Q3 product revenue (£150.2 million), N Brown expects to meet its adjusted EBITDA guidance for FY24 and is committed to investing in its transformational priorities.

Although the decline in product revenue is cause for concern, it is important to note that the drop in Q3 was narrower than in previous quarters. Q1 saw an 11.9% decrease, while Q2 had a 10.4% decrease. This improvement reflects the company’s efforts to stabilize its revenue and adapt to changing consumer trends.

Despite the challenges, N Brown highlighted positive performance in several categories, including third-party branded womenswear and lingerie, beauty, gaming consoles, and its premium own-brand, Anthology. The company attributed higher average item values to pricing discipline and product mix, although lower consumer confidence and measured choices affected volumes. N Brown also mentioned successful partnerships, such as the launch of Simply Be on Sainsbury’s online clothing platform and selected stores, which increased exposure to different customer segments.

N Brown continues to invest in its transformational priorities and has plans for several developments in 2024. This includes the launch of the new JD Williams website and the implementation of new technology, such as the Product Information Management (PIM) system, to enhance product descriptions and reduce returns. The company’s Net Promoter Score (NPS) for Q3 showed improvements compared to the previous year, reflecting better delivery performance and enhanced customer experience.

The company also highlighted proactive measures taken to moderate stock intake and clear older items, resulting in a cleaner stock position at the start of 2024 compared to the previous year.

Looking ahead to FY24, N Brown maintains its expectations for adjusted EBITDA. Although slightly softer revenues are anticipated, the company believes that further margin discipline will help offset this.

Overall, N Brown is making progress in its turnaround efforts, although it recognizes that a complete recovery will take time. The company remains optimistic about its future and will continue to focus on its transformational priorities to drive growth and profitability.

Useful links:
– Visit N Brown’s website for more information: https://www.nbrown.co.uk/
– Learn more about N Brown’s partnerships and initiatives: https://www.nbrown.co.uk/our-brands/