N Brown has recorded a drop of 28.9 per cent in its full year profits to February 29th. It has described the year as being critical in its transition to digital channels.
Group revenue also fell by 6.1 per cent to £858.2 million, with 85 per cent of product revenue coming via digital channels. Financial services revenue dropped by 2.7 per cent.
In the current FY, group revenues fell by 22 per cent in the first quarter, with product sales plummeting by 28.8 per cent, with financial services’ contribution down by 8.2 per cent.
“In a year of restructuring for the Group, Simply Be, JD Williams, Jacamo and Ambrose Wilson all grew digital revenue and following further progress in the first quarter of this financial year, 91 per cent of our product revenue now comes from digital channels. The retail environment remains heavily promotional and the regulatory challenges in financial services have required us to adapt and evolve our offer, but our commitment to driving operational efficiencies is creating the right platform for the future,” said CEO Steve Johnson.
The business says it will now develop distinct brands to attract a broader range of customers, a new homewares offering, flexible credit and an improved digital experience for customers.
Johnson added: “Challenges remain in the year ahead, but we are focused on accelerating the business and are confident we are taking the right actions to create a sustainable, profitable business for the long term which has the potential to generate significant value.”
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