N Brown margins suffer as profits edge up

N brown

N Brown group has reported a steady rise in profits in its first half as gross margins suffered from currency fluctuations.

In the 26 weeks to August 27, the retailer saw a 1.8 per cent rise in overall adjusted pre-tax profits to £32.2 million, while overall revenues jumped 5.6 per cent to £453.4 million.

The company’s key performer was its Simply Be fascia, which saw sales jump 21 per cent, while JD Williams and Jacamo also saw rises of 12.1 per cent and 6.7 per cent respectively.

Active customers across its leading brands jumped 7.5 per cent.

Online sales at the group jumped 14 per cent, driven by a 21 per cent rise from its key fascias.

A newly revealed tie-up with Amazon Fashion and Debenhams is also expected to push a significant boost in online sales.

Despite the steady sales rise, currency fluctuations saw the group‘s gross margins drop 190 basis points to 54 per cent.

“I am very pleased to report continued good trading in the half,” N Brown chief executive Angela Spindler said.

“We made significant ladieswear market share gains against what remains a subdued consumer backdrop.

“Our transformation into a flexible, online retailer continues to benefit all aspects of our business and we are today sharing our three growth levers going forwards.

”These are continuing to gain share in the UK, growing internationally and working in partnership with other companies to offer even more choice to our customers.

“At this early stage in the second half, current trading is on track with our plan and we are focused and well prepared for the peak trading period ahead.

”We are confident in our ability to deliver sustainable long-term growth and achieve our international ambitions.”

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