Despite the revenue drop, the group achieved an increase in its full year adjusted gross profit margin by 1.5 percentage points, reaching 47.7 per cent. This improvement was driven by a 1.2 percentage point rise in product margin, which benefited from a cleaner year-end stock position, a focus on profitable sales, and reduced freight rates, N Brown Group said in a press release.

The company successfully reduced its full year adjusted operating costs by £15 million. These savings, achieved through volume-related reductions and management actions, more than offset approximately £12 million in inflationary pressures.

N Brown Group reported a statutory profit before tax of £5.3 million, marking a significant improvement of £76.4 million, primarily driven by lower adjusting items. The adjusted profit before tax stood at £13.3 million, an increase of £8.4 million.

“We have delivered against our strategic and financial objectives this year. We have kept to our transformation plans, despite the macro-economic backdrop, whilst building resilience through our strong balance sheet, and achieving adjusted EBITDA above market expectations,” said Steve Johnson, chief executive.

Fibre2Fashion News Desk (DP)