The N Brown group has posted a “recovery” in H1 sales following an increased demand for homeware.
N Brown said it has experienced a product revenue trajectory which has “continued to improve” throughout the second quarter, stabilising at -20.5% for H1.
Losses in product revenue were down by 58.3% by the end of H1, reported at 28.8% in Q1 and 12% for Q2.
The group also revealed that a vast majority (92%) of its product revenue now came from online trading.
Overall group revenue was down 17.6% for H1, an improvement from the 22% decreased it experienced in Q1.
The retail group, which houses Jacomo, JD Williams and Simply Be, said it was “confident” of offsetting at least 75% of the group’s gross profit decline through operational cost savings, mostly in marketing.
N Brown also emphasised that its net debt has fallen during the half year period, down 17.3% to £455.9m.
The retailer said this came as a result of “steady” financial services cash collection rates, an “on-going focus” on cash generation, tight cost control, reduction in capital expenditure and suspension of the dividend and a smaller debtor book.
Steve Johnson, chief executive, said: “It is encouraging to see a continued improving trend in trading following the sharp decline witnessed upon the initial impact of Covid-19, with trading in-line with expectations.
“We will continue to implement our refreshed strategy, and particularly mindful of an uncertain UK retail environment, we will continue to focus on cost control, deleveraging and cash generation.”
N Brown said it will release its full set of results for the six months ended 29 August on 5 November.
