N Brown has posted an uptick in full-year profits despite a decline in sales as boss Steve Johnson said a refocus of the group’s strategy is “now required”.
The fashion group’s adjusted pre-tax profit increased 2.5% £83.6m for the 52 weeks to March 2, up from £81.6m for the same period the previous year.
However, on a statutory basis, the fashion retailers’ losses widened to £57.5m, up from £16.2m the previous year.
The company posted a 0.8% dip in group revenue to £914.4m as a 10.8% rise in sales across the retailer’s financial services arm to £298.6m was offset by a 5.6% slump in product revenue to £615.8m.
Two of the groups three power brands posted an uptick in profits. Simply B and Jacamo sales increased 4.4% to £131.5m and 3.9% to £64m respectively, however JD Williams sales declined 2.4% to £159.5m.
The fashion retailer closed all of its 20 bricks and mortar stores during the year due to “disappointing footfall” as it pivoted its attention to its online offering with digital sales, which accounted for 80% of its product revenue during the period.
N Brown chief executive Steve Johnson said: “A re-focusing of our strategy on delighting our customers is now required. We will initially focus on our core UK market, simplifying our approach to ensure our brand and product proposition continues to improve and resonate with customers.
“We will also look to harness data and technology to offer customers more choice and flexibility when shopping with us.
“All of this aims to return N Brown to sustainable profit growth, through a digital, retail-led, customer-centric strategy and at this stage in the new financial year our overall expectations are unchanged. We look forward to the future with confidence.”