Profits fall for N Brown as firm switches to digital offering
MANCHESTER-based plus-size retailer N Brown is looking ahead with confidence despite a fall in underlying pre-tax profit by 15.9% to £35m.
Revenue rose 4.2% to £415.8m for the six months ending August 29 (H1 FY15: £399.2m) with the company performing in line with expectations.
Unfazed by the fall in profits, chief executive Angela Spindler said it had been caused by a shift in the business away from direct mail to the digital media.
She said: “We have continued to execute significant changes in H1 and have delivered results in line with our expectations.
“We are adjusting our retail business model and the way we operate, transforming from direct mail-led to digital first. This has been driven by a clear understanding of what customers want, and fuelled by technology.
“Our transformation into a truly digital first, specialist-fit, fashion retailer is on track and is delivering tangible results, including good trading momentum online. We have previously communicated that this year will be significantly H2 weighted, and that remains the case. H2 has started well, with a pleasing performance in September, in line with our expectations and underpinning our confidence in the full year outturn.”
The company said further improvements to product quality and fashion credentials are being delivered and the JD Williams turnaround was on track, with new customers up 21%.
As well as JD Williams, the Lever Street-based group owns Simply Be, Jacamo, High & Mighty and Figleaves. It employs 2,800 people.
