N Brown enjoys boost in Christmas sales
Multi-channel retail group N Brown has reported a 7.9% increase in like-for-like sales during the Christmas trading period as the company benefited from improved product ranges, keener pricing, strong online trading and the recruitment of new customers.
In the 19 weeks to 12 January 2013, total group revenue rose by 8.5%. Online sales rose by 17% and now account for almost 54% of the total revenue.
N Brown said its mix of sales was broadly the same as in the first half of the financial year with the strongest sales performance coming from brands targeted at customers under the age of 50. Other categories putting in a strong performance included menswear and footwear as well as full margin sales of ladieswear, although lower stock levels meant there was a reduction in discounted sales in this category. Gross margin was in line with expectations.
The company saw higher levels of new customer recruitment in the period following an investment of £2 million above the original budget. Although sales from the new customers were at a lower margin due to introductory discounts and expected higher levels of bad debt, N Brown expects this group to help to drive the business forward in the next financial year.
N Brown, whose retail brands include Simply Be, Figleaves and Jacamo, said in a statement: “The current year has seen momentum building in the rate of revenue growth through improved product ranges, keener pricing, online trading and customer recruitment. We expect these features to continue to drive the business forward next year, enhanced by developing overseas markets and the stores channel.”
The company expects the results for the year to 2 March 2013 to be broadly in line with the board’s expectations.
Alan White, chief executive, added: “It has been pleasing to see our investments in improved online systems, more customer recruitment and revamped product ranges and pricing continuing to drive a strong sales momentum, despite the lacklustre retail environment.”
White will be taking part in the Retailer Interview: Taking A Fresh Look At Customer Loyalty Through Traditional Multichannel World at the Retail Bulletin’s Multi-channel Retailing Summit 6 February 2013. Click here for programme details and registration.
