N Brown in fashion with younger shoppers as sales leap
HOME shopping group N Brown, which specialises in the plus-size clothing market, says sales in the last six weeks have surged nearly 10%.
Releasing its half-year results – which showed a slight fall in profits after investment in high street shops and customer acquisition – the Manchester company said its recent success was being driven by its younger brands including Simply Be and Jacamo – which is aimed at younger men wanting fashion in larger sizes.
In the six months to Sep[tember 1 group revenue was up 4.3% to £379.3m. Excluding stores opened in the last year like-for-like sales growth was by 3.7%.
N Brown said gross margin had fallen by 1.6% to 53.3% in the period, but is expected to recover in the second half
Operating profits were down 2.8% to £45.7m after absorbing the anticipated £1.1m of losses from the Simply Be concept stores and a £1.3m increase in depreciation charge. Bottom-line profits were down £2m to £42m.
Chief executive Alan White told TheBusinessDesk.com he is confident of a strong second half, with the stable weather conditions boosting the group’s fortunes in the second half.
“The 10% increase in the last few weeks are well above our expectations and we are hopeful this trend will continue in the fourth quarter and the Christmas trading period.
“It was always going to be a year of two halves – we had a tough comparison in the first half last year, but with better stock control and less discounting in the second half this year than last year, we should see better results.”
Jacamo was the group’s fastest-growing brand with sales up by 40% for its offer of fashionable menswear available in larger sizes, including the Freddie Flintoff range which has been extremely popular.
The group said there were also strong performances from Figleaves, which enjoyed the full benefit of last year’s cost reduction programme, and Simply Be.
Sales from the core brands, targeted at the over 50’s, were level with the first half last year at £236m, and accounted for 62% of total sales.
N Brown said many of these customers had found it more difficult to maintain spending levels during the recession.
Mr White said a recent investment in the mid-life women’s JD Williams catalogue and website – which he described as one of the “bedrocks of the business” had delivered a 5% sales improvement.
The company said it is pleased with the early results of its Simply Be/Jacamo shops, particularly those in high footf all locations such as Liverpool One and the Metro Centre in the Noth East.
A seventh Simply Be shop will open in Manchester’s Arndale centre this week. Sales and losses from the stores in the first half were £1.7m and £1.1m respectively.
