The owner of fashion brands Jacamo and Simply Be, N Brown Group plc (LON:BWNG), reported lower revenue as demand for womenswear and shoes fell.
N Brown said group revenue in the 13 weeks to May 28 fell 0.2% while product revenue dropped 1.6%, although financial services revenue rose 3.4%.
But the group, formerly focused on catalogue sales, said it was increasing its online sales penetration and 76% of new customer demand came from the internet in the period, up 8% against last time.
Total active customer numbers were broadly flat year-on-year, with Simply Be, Jacamo and JD Williams brands recording healthy active customer growth, offset by a decline in Traditional titles and Fifty Plus.
By category, menswear achieved the strongest performance, driven by improved products, with revenue up in mid-single digits.
Ladieswear saw a low single-digit decline in revenue year-on-year against a challenging market backdrop.
Footwear revenues declined in mid-single digits. Home and gift revenues were broadly flat versus the first quarter last year against a tough comparative.
Chief executive Angela Spindler said: "Overall trading in the quarter has been in line with our expectations and our guidance for the full year remains unchanged.
"Product sales have been satisfactory when viewed against the challenging market backdrop.
"The growth achieved in financial services revenue was driven by the increase in new credit customers over the previous financial year.
"Looking forward, our new systems will give us a strong platform to capitalise on the significant growth opportunities ahead."
Shares in the group rose 11.5p, or 5.4%, to 225.9p in early London trading.