The rise in inflation has been blamed by N Brown, the group behind the Simply Be, JD Williams and Jacamo brands, for the drop in its revenue during the first three months of its new financial year.
The Manchester-headquartered company has posted a group revenue of £165.1m for the period to May 28, 2022, down 2.1% on the same period in 2021.
In a statement issued to the London Stock Exchange, N Brown added that its earnings expectations for its full year remain unchanged.
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N Brown added: "Q1 FY23 has seen continued growth in revenue from strategic brands against a comparative period last year that covered the final period of full lockdown in March and early April 2021, which provided a tailwind to online retail demand.
"The managed decline in revenue from heritage brands continued, albeit at a much more moderate level than previously, as we no longer cycle against the drag from closing the Figleaves website.
"The trading environment has been challenging since the start of FY23, with inflation impacting consumer confidence, resulting in softer volumes and revenue than anticipated at the start of the year."
Chief executive Steve Johnson said: "Sales volumes since the start of the financial year have been softer, reflecting various well-documented pressures on consumer confidence, which are showing no signs of abating in the short term.
"As these pressures persist, we expect the trading environment to remain challenging and will, therefore, continue to take actions to mitigate the effects wherever possible.
"Despite this uncertain backdrop, our FY23 adjusted EBITDA expectations remain in line with previous guidance, as we balance cost control and our variable cost base with investments in our technology, our people and in our strategic brands.
"The board remains confident in the group's strategy and achieving its medium-term objective of delivering sustainable profitable growth."
On its future, N Brown added: "Our earnings expectations for FY23 remain unchanged from those outlined in our preliminary results on 18 May 2022, with adjusted EBITDA expected to remain at a level similar to that reported in FY21.
"The group remains mindful of the high level of economic uncertainty and the ongoing impact of this on consumer activity and operating costs.
"However, these dynamics are being actively managed, and the group will update on trading at the time of its interim results in October.
"The board remains confident that over the medium term our strategy will support the delivery of 7% product revenue growth with a 13% EBITDA margin."
