// N Brown Group returns to profit in its first half
// Half-year statutory profits came in at £18.8m compared to losses of £27.1m last year
// However, half-year revenues dropped 5.4% to £432.9m
N Brown Group’s turnaround scheme and online push has started to pay off, as the fashion retail firm posts a return to profit in its first half results.
The parent company of Simply Be, Jacamo and JD Williams revealed statutory profits of £18.8 million for the six months to August 31, compared to losses of £27.1 million for the same time a year ago.
On an adjusted basis, pre-tax profits grew 3.9 per cent year-on-year to £31.8 million.
Meanwhile, half-year statutory operating profit came in at £14.7 million, compared to a loss of £28.3 million last year.
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Adjusted EBITDA for the period grew four per cent year-on-year to £54.1 million but half-year revenues dropped 5.4 per cent to £432.9 million.
However, the N Brown said it combined online sales grew five per cent year-on-year across womenswear and menswear.
It added that online sales now accounts for 84 per cent of its business, compared to 80 per cent in the previous financial year.
Last year, N Brown revealed it would a undergo major restructure, which includes store closures to become an online-only retailer.
“We announced our new strategy in May to return N Brown to sustainable profit growth and we have made good progress over the first half of the year,” chief executive Steve Johnson said.
“In particular, we have delivered on our strategy of growing digital revenue across Simply Be, JD Williams, Jacamo and Ambrose Wilson.
“This has been achieved by taking a more targeted approach to marketing and customer recruitment.
“The retail environment remains heavily promotional, but we are concentrating on continuing to improve our customer proposition and ensuring we operate as efficiently as possible.”