N Brown Group, the parent company of Simply Be, Figleaves and
High & Mighty, reported solid growth in the first half of the
year, with sales up 4 percent to £363.7 million ($579.8
million) and operating profit up 5.9 percent to £44.8
million ($71.4 million) in the six months to 27th August. Its
Simply Be title experienced a “modest” UK growth,
said chairman Lord Alliance in a statement, but saw international
revenue more than double during the period-up 173 percent to
£4.1 million ($6.5 million).
What’s more, Simply Be sales in the USA have already overtaken
those in Germany, where the returns rate remains
“stubbornly high”, Lord Alliance added. Losses on the
international activities more than doubled to £2.7 million
($4.3 million)-compared with £1.1 million ($1.8 million) in
2010-as the company invested more than £3 million ($4.8
million) to build its customer database. The peak of the losses
will occur this year-forecast at £4 million ($6.4
million)-but Lord Alliance believes international expansion will
“deliver long-term growth despite the short-term impact on
profits,” as the customer database next year will have a
better balance between new and existing customers.
Share