THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
N Brown warns on full year profit

N Brown has warned that its pre-tax profit will be below its guidance and current market expectations of £88 million.

GENERAL MERCHANDISE

N Brown warns on full year profit

N Brown has warned that its pre-tax profit will be below its guidance and current market expectations of £88 million.

In a trading statement, the catalogue and stores retailer said its fourth quarter sales covering the 13 weeks to 28 February had grown by 3.6% as trading recovered from a “challenging” autumn season.

However, fourth quarter revenue was impacted by the continued rebalancing of the business towards product sales and away from financial services. Although the transition was planned and in line with strategy, the pace of adjustment was faster than anticipated during the quarter. This resulted in overall full year 14/15 revenue being at below expectations and flat year-on-year.

N Brown said its JD Williams, Simply Be and Jacamo brands were performing strongly, with active customer file growth of 5%.

Angela Spindler, N Brown chief executive, said: "We are very encouraged by the momentum seen during Q4, both in terms of trading and strategic progress. Combined with our continued product improvements, during the period we decided to invest more in price; this proved successful, with product volumes returning to double-digit positive growth for the first time in many years.

"We have also accelerated our strategic transformation programme and commenced a major extension of our warehouse to support our future growth. The transformation we are driving is fundamental and necessary for future long-term sustainable growth.  

"Whilst we are disappointed by the slower than anticipated progress from a profit perspective, this is because we are taking the right decisions now - in some areas earlier than anticipated by our previous profit guidance - in order to build a better business for an online world. We enter our new financial year with huge enthusiasm about the exciting journey ahead."

Following a review of the business and its future profit potential, N Brown has decided to close its small Gray & Osbourn catalogue business which is likely to result in exceptional costs of circa £11 million to £13 million in the full year 14/15. N Brown said the closure would not have any impact on profit expectations.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues