The retailer said this comes in below previous expectations. Despite entering the trading period “well prepared”, and its clothing and footwear continuing its resurgence into Q3, with growth of 18%, N Brown said this was offset by a reduction in home and gift of 19%.
It was also affected by a naturally higher returns rate as its product mix moved back into clothing and footwear, and particularly into higher returning segments such as dresses as well as a “softer online home market”.
For FY22, it now expects to report Adjusted EBITDA to be between £93m and £96m, which is at the lower end of its previously guided range, reflecting the “online market conditions and a slightly higher level of project spend now being expensed rather than capitalised”.
However, it said the board “remains confident” in achieving the group’s medium-term objective of delivering sustainable profitable growth.
Steve Johnson, chief executive, said: “The business has performed resiliently over the peak period and our colleagues have worked tirelessly to deliver for customers in challenging circumstances. Against the backdrop of Covid uncertainty, a volatile consumer environment and well-documented supply chain issues, the continued growth of our strategic brands has been particularly pleasing, as has a return to growth in active customers.
“We are now seeing more people than ever shopping with Simply Be and Jacamo. JD Williams is also resonating well with customers, particularly on the back of our successful partnerships with Amanda Holden and Davina McCall.”
He added: “We have continued to execute on our plan and, looking ahead, will continue our strategic investment to transform the business, supported by a robust balance sheet and a strengthened executive team.”