Home shopping group N Brown has reported a continued recovery as Home & Gift sales grow company share.
According to its third quarter trading update, the group said product revenue has continued to recover from the sudden and sharp decline experienced in the first quarter of FY’21 caused by the impact of Covid-19. Sales were down 8.9% compared to 28.8% in Q1.
Customer trends in the Q3 period continued to reflect the Covid-19 environment. Home & Gift sales now comprise 42% of product revenue, compared to 32% in the same period last year.
The five strategic brands delivered product revenue down a modest 1.4%, in a period when Group marketing costs were 40% lower than the prior year, and it was “particularly pleased” with the performance of JD Williams and Home Essentials.
“Encouragingly, we saw growth in online customer accounts in JD Williams, Simply Be, Jacamo and Home Essentials in the period,” the group added.
As a result, the group currently expects to deliver FY’21 adjusted EBITDA of between £84m to £86m.
Steve Johnson, Chief Executive, said: “We remain focused on our number one priority of looking after our colleagues, whilst ensuring the business has the agility to respond to the ever-changing external environment and can continue to serve our loyal customers.
“We continue to move through the acceleration phase of our strategy; simplifying and strengthening our core brand proposition whilst improving our digital capabilities. This is generating continued momentum within the business, despite the difficult macroeconomic backdrop. We saw a continued recovery in product sales over the key Christmas period with particular strength in our Home & Gift proposition.
“We were pleased to recently complete our successful capital raise, which will help us continue the acceleration phase of our strategy and create a sustainable business delivering profitable growth over the long term. We remain mindful of the ongoing uncertainty in the UK retail environment, but as a digital business, we look forward to building on the unique strength of the Group’s brands in 2021 and beyond.”