N Brown Group PLC (AIM:BWNG), the online fashion retailer, said weaker consumer confidence lead to a more challenging online retail market as it reported a fall in profits.
In the six months to 27 August 2022, adjusted profit before tax fell 82% to £4.3mln, while revenue slipped 4.6% to £331.5mln compared to the same period last year.
Product revenue for its brands such as Jacamo and JD Williams is expected to continue to fall in the second half, with the company forecasting full-year adjusted underlying earnings (EBITDA) of £60mln, down from £95mln.
“We anticipate continued softness in trading over the second half as macroeconomic pressures continue to weigh on consumers, despite government support,” said chief executive Steve Johnson.
According to a statement, the company expects year-end net debt to be reduced compared to last year, whereas previous estimates were in line with last year’s closing position, due to it maintaing a "strong unsecured net cash position".
N Brown added that operational and central cost bases are being tightly controlled despite inflationary pressure, with action taken to mitigate softer volumes and inflation.
That includes implementing measured price increases supported by data tools, with prices up 14%, operational cost flexibility and contract management which has generated savings to offset returns and inflation.
Despite the challenging macro economy, it said it continues its digital transformation, with its new mobile website launching in September, and a plan to launch its Jacamo site in the first half of 2023.