Plus-size retailer N Brown’s shares drop after pandemic hits revenue
Shares in plus-size fashion retailer N Brown plunged this morning after the company, which owns Simply Be and Jacamo, announced a dip in revenue due to a drop off in occasionwear sales during the pandemic.
N Brown’s share price fell 13.48 per cent to 64.2p after it reported a 1.4 per cent drop in product revenue across its five brands in the third quarter.
However it said revenue had continued to recover in the 18 weeks to 2 January, following a “sudden and sharp decline” last year, caused by the impact of the Covid-19 crisis.
N Brown, which was admitted to London Stock Exchange’s growth market AIM in December following a £100m capital raise, said it is trading in line with expectations and expects to report full-year earnings of between £84m and £86m.
Financial services cash collection rates were also in line with the previous year.
Computing, gaming and white goods performed strongly during the quarter, mirroring a trend reported by other retailers, with sales jumping 115 per cent, 50 per cent and 48 per cent respectively.
Womens’ fashion sales reflected the Covid requirement, with demand shifting from occasionwear to loungewear products.
A similar trend was observed in N Brown’s menswear brands, with loungewear sales growing 35 per cent compared to the previous year.
N Brown chief executive Steve Johnson said: “We continue to move through the acceleration phase of our strategy; simplifying and strengthening our core brand proposition whilst improving our digital capabilities,
“We saw a continued recovery in product sales over the key Christmas period with particular strength in our home and gift proposition.
“We were pleased to recently complete our successful capital raise, which will help us continue the acceleration phase of our strategy and create a sustainable business delivering profitable growth over the long term.
“We remain mindful of the ongoing uncertainty in the UK retail environment, but as a digital business we look forward to building on the unique strength of the group’s brands in 2021 and beyond”.