N Brown (N) Group PLC has released its Q3 trading update for the 18 weeks ended 6 January 2024. The company, a top 10 UK clothing & footwear digital retailer, highlighted an improving product revenue trend in Q3 and confirmed that its full-year EBITDA remains on track. The strategic brands and heritage brands saw a decrease in product revenue, while financial services revenue also experienced a decline. The company's strong balance sheet with total accessible liquidity of over £150m was emphasized.
The improving product revenue trend continued in Q3, reflecting an improvement in both the Clothing & Footwear and Home businesses. The company saw strong performance in categories such as third-party branded womenswear and lingerie, beauty, gaming consoles, and its premium own-brand, Anthology. The launch of Simply Be on Sainsbury's online clothing platform and selected stores was highlighted as performing strongly in its first year.
N Brown (N) Group PLC is continuing to invest in its transformational priorities, with plans to enhance the customer experience in 2024, including the roll-out of the new JD Williams website and the addition of new technologies such as the Product Information Management ('PIM') system. The company also received the Drapers Award for Diversity and Inclusion during the period.
The company emphasized its resilience through a strong balance sheet, with proactive moderation of stock intake and clearance of older items, resulting in a cleaner stock position entering peak trading. N Brown (N) Group PLC reported a total of £66.3m across unsecured net cash and amounts voluntarily undrawn on the securitisation facility, an increase of £30.8m during the financial year. Adjusted net debt at 6 January 2024 of £246.1m has reduced from the 4 March 2023 position of £297.4m.
The company's expectations for FY24 Adjusted EBITDA remain unchanged, with slightly softer revenues expected to be offset by further margin discipline. Adjusted net debt is anticipated to improve when compared to previous guidance and is expected to be under £260m at the end of FY24, while retaining a strong unsecured net cash position. The Board remains confident in the strategic direction of the business and in the benefits of the ongoing investment in digital transformation, with a focus on delivering sustainable profitable growth.