LONDON (ShareCast) - (Sharecast News) - N Brown lost almost a quarter of its market value after the online clothing and homeware retailer warned earnings would be lower than expected because of soaring inflation.
In an unscheduled trading update N Brown said results for the year that ended on 27 February would be in line with forecasts including adjusted earnings of £93m-£96m.

But the company said rapidly rising inflation meant earnings for the current year would be similar to the 12 months that ended in February 2021 when earnings were £87m. House broker Shore Capital cut its earnings estimate for this year from £103m to £87m after the statement.

N Brown shares fell more than 24% in early trading and were down 27.5% to 28.19p at 08:41 GMT.

The cost of shipping goods will stay high during the year and rising inflation will push up other costs, N Brown said. Shore said N Brown absorbed £12m of extra freight costs last year in the expectation that rates would soften. Labour, energy and distribution costs are also rising, it said.

Steve Johnson, N Brown's chief executive, said: "We are not immune to the supply chain and inflationary cost pressures being seen across the wider market. However, we continue to take proactive actions to offset these and mitigate the impact on our FY23 performance."

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