Tuesday, April 20, 2021

N Brown’s slight increase in sales fails to halt profit slump

N Brown has said it was on track to meet full-year expectations despite its profits falling by almost a fifth according to its interim report released today.

The Manchester-based company posted a 19.8 per cent drop in in adjusted pre-tax profit to £31.6 million for the half year to August 27, but this was ahead of consensus forecasts and followed a recovery in sales in the second quarter.

However, revenue was up one per cent to £429.4 million for the first half and the retailer said a surge in mobile traffic helped grow its online revenue by 7.5 per cent. 

N Brown added that its autumn-winter season started in line with its plans, with management taking on a “more assertive stance” on prices to cope with volatile market conditions.

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Chief executive Angela Spindler praised the progress of the company as she leads the retailer into the digital age.

“Spring-summer was challenging for the entire retail sector, and we were not immune to this, but we demonstrated our flexibility as we improved revenue performance through the season whilst controlling our costs well,” she said.

“The autumn-winter season has started in line with our plans. Our improving agility is enabling us to trade the business in a volatile environment. 

“At this stage we are comfortable with current market expectations for the full year.”

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