N Brown Group PLC (BWNG.L), a big British women's clothing retailer, blamed the sales decline in the first quarter as a shut down operation under the digital spanformation.
As of the first quarter of June 1st, N Brown revenue fell 3.8%, excluding stores and the U.S. market, there is still a 1.3% decline.
However, data show that even in the digital channel, the group's revenue in the first quarter also dropped by 3.7%, and the overall revenue dropped by 12.7%, excluding the stores and the US market. The online product revenue period recorded an increase of 3%, while the overall product revenue decreased by 5.4%.
During the reporting period, the JD Williams, Simply Be and Ambrose Wilson digital income recorded an increase of 5.9%, 4.6% and 10.1% respectively.
Steve Johnson, chief executive, said that the retail environment in the current fiscal year is facing great challenges but remains unchanged throughout the year. Gross margin of products is expected to maintain a -100 basis point drop to flat, and operating expenditure is expected to decline by 4.5 - 2.5%.
Figures released by the National Bureau of statistics on the same day showed that in May, the retail sales in the UK fell by 0.5%, a contraction in two consecutive months, an increase of 2.3% over the past two months, the worst performance in October 2018, and a 2.7% increase in market expectations.
For the downturn in the retail sector, the BLS blamed the cold weather on the demand for clothing and footwear, which fell by 4.5% in May, the biggest decline since July 2015, and the struggling department store industry has never increased since September.
It can be traced back to 1859. The N Brown, formerly known as the mail Direct Selling Company, closed 20 stores last year. Currently, digital business has occupied 83% of the sales, of which JD Williams brand 78% comes from digital channels, and Ambrose Wilson brand also has 56% of its business from digital channels.
Last year, the company achieved a profit of 914 million 400 thousand pounds, a slight decrease of 0.8% per annualized year. The revenue of its products decreased by 5.6% to 615 million 800 thousand pounds. The income of digital channel products increased 4.1% to 485 million pounds, accounting for 80%, and the Simply Be, Jacamo and JD Williams digital revenues were 93%, 93% and 76% respectively. During the period, group adj E BITDA recorded 128 million pounds, an annual increase of 7.9%. Author: Li Yan