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Clothing and footwear digital retailer N Brown reported that first-half profit doubled as higher margin offset flat revenue growth. For the 26 weeks ended 28 August 2021, pretax profit grew 100% to £28.2 million year-on-year, while revenue fell 0.1% to £346.8 million.
Adjusted gross margin was 51.3%, compared to 44.3% in H1 21, led by a jump in financial services gross margin following the reduction of the Covid-19 expected credit loss overlay, to £5.2 million from £17.0 million.
Looking ahead to the full-year, the company re-iterated its previously communicated expectation for adjusted earnings before interest, taxes, depreciation and amortisation, or EBITDA, to be in the range of £93 million to £100 million.
'[W]e now expect group revenue to be broadly flat .. capex to be c.£25m in FY22, lower than previously guided but a step up on last year,' it added.
'Net interest costs are now expected to be slightly lower at c.£15m.'