N Brown Group issues profit warning
N Brown Group has revised its annual profit forecasts. It now expects its full year adjusted profit before tax to fall between £70 million and £72 million which is down from its previous guidance of between £78 million and £84.1 million. For the 18 weeks to January 4th it experienced a 4 per cent fall in product revenue as well as a 4.6 per cent decline in its financial services division revenues.
"Financial services revenue was down, reflective of our strategic approach to the retail business and continued tightening of our lending criteria," said N Brown CEO Steve Johnson. "Our work so far has highlighted the need to have a tighter brand portfolio, a sharper focus on product, and a cost base appropriate for delivering sustainable digital growth. At the same time, we will continue to proactively address the accelerating and cumulative external factors which are anticipated to reduce the size of our financial services business over the next two years."