In its trading update for Q4 – the 13 weeks to 28th February 2015 – N Brown Group has warned that its pre-tax profit will fall below the expectation of £88 million. This has been attributed in part to the transition from financial services to product sales yet countered somewhat by the growth in sales from JD Williams, Simply Be and Jacamo. CEO Angela Spindler also confirmed the closure of Gray & Osbourn which would results in exceptional costs of between £11 million to £13 million in the full year 2014-15.
Commenting on the overall results Angela Spindler said “We are very encouraged by the momentum seen during Q4, both in terms of trading and strategic process. Combined with our continued product improvements, during the period we decided to invest more in price; this proved successful, with product volumes returning to double-digit positive growth for the first time in many years. We have also accelerated our strategic transformation programme and commenced a major extension of our warehouse to support our future growth. The transformation we are driving is fundamental and necessary for future long-term sustainable growth.”
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