LONDON (dpa-AFX) - Shares of Brown (N) Group plc (BWNG.L) were losing around 24 percent in the early morning trading in London after the clothing & footwear digital retailer reported Thursday that its total revenues for the 18-week period to January 4 fell 5 percent.
Looking ahead, the company now expects fiscal 2020 adjusted profit before tax to be in the range of 70 million pounds to 72 million pounds, mainly due to a lower than expected benefit from the IFRS9 non-cash provision estimate, combined with lower Financial Services revenue and a highly promotional market.
The company said the current range of consensus for fiscal 2020 adjusted profit before tax forecasts is 78.0 million pounds to 84.1 million pounds.
Further ahead, the company expects that the reduced scope for bad debt provision improvements, combined with industry-wide regulatory changes, will result in fiscal 2021 adjusted profit before tax being at a similar level to fiscal 2020.
In its trading update, the company said the 18-week digital revenue grew 2.5 percent, driven by strong growth at Simply Be & Ambrose Wilson. Meanwhile, Product revenue fell 4.0 percent, as the firm continues the managed decline of legacy brands.
In London, Brown shares were trading at 108.20 pence, down 23.75 percent.
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