JD Williams and Simply Be owner N Brown crashes into the red after reporting £71.1m annual losses
Simply Be and JD Williams’ owner warned of a “very challenging” few months after it crashed into the red.
Shares in N Brown Group, which also owns menswear brand Jacamo, plunged after it reported an annual loss of £71.1m for the year to March 4.
That followed a profit of £19.2 million over the previous 12 months. With sales of his clothes falling by almost 7 per cent to £433.4 million, N Brown said inflation had taken a toll on the company and weighed on consumer spending.
The drop in sales came despite the retailer raising prices and reducing the number of items on sale.
The cost of the average item increased by 12 percent.
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N Brown warned that conditions are likely to get worse before they get better.
It said it has already started the new fiscal year with less active customers and demand for its summer range has been hit by poor early spring weather.
Staff has also been affected, with N Brown revealing that it laid off its workforce of around 1,800 in the UK after revenues fell.
The retailer said it is closely monitoring costs as weaker consumer demand continues to weigh on its performance.
The stock fell 9.8 percent.