N Brown shares recover as group reveals revenue growth
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Shares in N Brown group are showing signs of recovery after the retailer revealed growth in revenues and
Group sales were up by 0.5% to £168m in the period as clothing and footwear sales continued to recover and demand increased 21% compared to the prior period with its own brand womenswear up 27% and menswear up 25%.
It also saw growth across its five leading brands; Jacamo, Simply Be, JD Williams, Ambrose Wilson and Home Essentials, with product revenue up by 15.5%.
The group has also announced Amanda Holden and Davina McCall as its latest brand ambassadors for JD Williams.
The Manchester-headquartered group saw its shares plummet yesterday after the company warned of new legal problems.
N Brown is currently involved in a legal case with German insurer Allianz over historic sales of PPI insurance. The company offered PPI to its credit customers until 2014.
The case with Allianz is complex and the company says it isn’t able to estimate the likely costs it will face. However, Allianz is now expanding the scope of its claim against N Brown to £36m.
The news saw share price, but this morning they were gaining momentum with prices at 59p having dropped from 64.60p earlier in the week.
Steve Johnson, CEO, said: “The strategic transformation initiatives we have enacted over the past two years have now started to deliver product revenue growth, with customers responding well to the new ranges across our core brands.
“We have a number of exciting initiatives in the pipeline and today we have announced a new partnership with Amanda Holden and Davina McCall to be the new faces of JD Williams, leading some innovative new campaigns which will serve as a rich source of inspiration for our customers.
“Whilst the external environment remains challenging, we have made a good start to the financial year and trading remains in-line with our expectations.”