By Najat Kantouar
N. Brown Group, the U.K. online retailer, announced a pretax loss for the current period due to restructuring costs and lower online orders. This decline in performance can be attributed to cautious consumer behavior and unseasonable weather conditions.
The company reported a pretax loss of £4.1 million ($5 million), reflecting £4.5 million in restructuring activities. This is a significant decrease compared to the profit of £7.2 million recorded during the same period last year.
Total revenue also experienced a decrease, falling from £331.5 million to £297.0 million. The decline in revenue can be attributed to the high inflationary environment and low consumer confidence.
In terms of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), N. Brown Group reported £17.5 million, down from £27.9 million. Adjusted EBITDA is considered a key metric as it excludes exceptional and one-off items, providing a clearer picture of the company’s underlying financial performance.
CEO Steve Johnson acknowledged the challenging market conditions and stated that they had taken immediate action to adapt to the trading environment. He emphasized the importance of maintaining focus and discipline in areas within their control. The company remains on track to deliver full-year adjusted EBITDA in line with the board’s expectations.
N. Brown Group has set their market expectations for adjusted EBITDA in fiscal 2024 at £44.7 million.
At 0812 GMT, shares were down 0.5 pence or 2.5%, trading at 19.5 pence.