Fashion, homewares and furnishings retailer Joe Browns has reported a decline in sales as profit fell into the red.

According to its latest filed accounts for the year ended 30 June 2024, total sales fell 15.9% to £40.5m from £48.2m in 2023.

Pre-tax losses resulted at £1.6m, down from its profit of £1.9m recorded the previous year.

Sales in the UK were down 16.3% to £39.5m from £47.2m, while EU revenues were flat at £956,000. Sales outside the EU declined from £60,000 to £55,000.

Stated within its report, the company said: “This fall (in revenue) was primarily in sales to its own customers and marketplace partners. Wholesale and retail remained in line with expectations.

“The Company’s changed strategy in order to widen the product’s appeal had an adverse effect on customer spend as diluting the individuality and handwriting of the product alienated the existing customer base.

“Issues pertaining to the e-commerce platform led to inefficiencies during the fiscal year. This was despite efforts to increase sales and improve the customer experience. The various operational and technical challenges caused a suboptimal performance across key performance metrics.

“During the year the business saw an increase in gross margin from 58.7% to 60.0%. This was the result of selling less discounted product.

“The Company did not copy the heavy discounting tactic used by many of the brand’s competitors to boost sales in response to the headwinds they faced. Instead, the Board took the view that continuing to invest in the brand would better serve the Company’s long-term interests.”