N Brown, the fashion and homewares e-tailer, has reported an increase in sales for its star brands and announced the appointment of two new celebrity ambassadors. However, despite this positive news, the company’s share price continues to fall due to complications surrounding a legal case.

In the first quarter of the financial year, N Brown saw a 4.6% rise in product revenue, reaching £106.9 million. The company’s five strategic brands, including Jacamo, Simply Be, JD Williams, Ambrose Wilson, and Home Essentials, experienced a significant growth of 15.5% to £86.1 million. However, its ‘other brands’ saw a decline of 24.6% to £20.8 million, and Financial Services revenue dropped by 5.9% to £61.8 million due to lower product sales. Overall group revenue saw only a marginal increase of 0.5% to £168.7 million.

The success of N Brown’s strategic brands reflects the company’s transformation over the past two years. These brands accounted for 81% of product revenue in the first quarter, compared to 67% in the same period in 2019. It also marked the first quarter of product revenue growth since Q3 FY18. The Clothing & Footwear category performed well, with a 21% increase in demand, particularly in Womenswear and Menswear own-brands, which saw growth of 27% and 25% respectively. However, Home & Gift sales were lower due to the absence of pandemic-related purchases in the prior year.

To further promote its strategic brands and raise customer awareness, N Brown has invested in marketing initiatives. As part of this effort, the company has enlisted Amanda Holden and Davina McCall as brand ambassadors for JD Williams. The aim is to increase consideration for the boutique shopping experience among the target audience. These new ambassadors will lead innovative campaigns to inspire customers.

Looking ahead, N Brown expects product revenue growth of 3% to 7% for the current financial year, with adjusted EBITDA projected to be between £93 million and £100 million. CEO Steve Johnson expressed satisfaction with the company’s transformation initiatives, which have now resulted in product revenue growth. He emphasized the positive response from customers to the new ranges offered by N Brown’s core brands. With exciting initiatives in the pipeline and the addition of Amanda Holden and Davina McCall as brand ambassadors, N Brown aims to inspire and engage its customers further.

Useful links:
1. N Brown official website
2. Retail Week – Article on Amanda Holden and Davina McCall as brand ambassadors