N Brown Group delivered another solid trading update, with
like-for-like sales up 3.7 per cent in the 26 weeks ended 1st
September 2012.
The plus-size apparel specialist, which operates Simply Be and
Jacamo among other brands, saw total revenue rise 4.3 per cent to
£379.3 million in the first six months of the year. The rise
was mostly driven by growth in its younger brands and strong
online trading. Online, sales grew 12 per cent in the period, to
£196 million, and now account for 53 per cent of home
shopping revenue. Operating profit was down 2.8 per cent, however,
after absorbing the anticipated losses of the Simply Be concept
stores and a £1.3 million increase in depreciation
charge.
N Brown is further looking to improve the company’s market share
through overseas expansion. Sales in the US increased by 53
per cent to £3.4 million in the half year, which saw N Brown
test Marisota as an alternative brand for direct mail campaigns,
leaving Simply Be to be promoted primarily online. In Germany,
the returns rate remains at an “unacceptable” level,
says chief executive Alan White, adding that “system
changes” next year will be put in place to “amend the
business model”. This should result in a smaller but
profitable business, he notes.
Current trading is positive, up 10.1 per cent in the six weeks to
13th October and White is confident the business will meet its
expectations for the full year by continuing to “exploit
the strong selling propositions in the plus-size and mature
markets”.
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