UK: Younger brands boost N Brown H1 results
- Pre-tax profit down 6.7% to GBP41.8m
- Gross margin slipped 1.6% to 53.3%
- Revenue up 4.3% to GBP379.3m
Strong growth in men's wear and footwear has helped N Brown Group to 4.3% rise in first-half revenue, with the internet and catalogue home shopping retailer booking a "very encouraging" 9.4% jump in like-for-like sales at the start of the second half.
But the retailer said the wet summer had "depressed" sales of ladies' clothing by 2% - a category that accounts for 49% of all sales - contributing to a 6.7% fall in pre-tax profit to GBP41.8m (US$67.3m).
Gross margin rate in the 26 weeks to 1 September fell 1.6% to 53.3%.
Operating profit edged down 2.8% to GBP45.7m after absorbing an expected GBP1.1m loss from the company's Simply B concept stores and a GBP1.3m increase in the depreciation charge.
Double-digit revenue growth in younger brands like Jacamo and Simply Be, coupled with strong online trading, pushed total group revenue up to GBP379.3m, compared to GBP363.7m last year.
Like-for-like sales rose 3.7%, helped by the company's men's wear, footwear and leisure divisions, while e-commerce sales jumped 12% to GBP196m driven by mobile enabled websites.
Chairman Andrew Higginson said: "The strategy to focus on the development of our core brands and our online trading capability is delivering positive results, as evidenced by our strong start to the second half."
The multi-channel retailer revealed it had a "strong" start to the second half with sales up 10.1% during the six weeks ended 13 October, while like-for-like sales increased 9.4%.
Chief executive Alan White said: "This gives us some optimism in the outlook for our second half performance."
What else is likely to be topping the apparel industry's software agenda this year? Using technology to help mitigate risk in the supply chain, automating data capture, and greater collaboration and i...
Where should apparel firms be focusing their software investments now if they want to remain competitive into the future? According to industry experts consulted by just-style, technology agendas shou...
Faced with a raft of challenges across the apparel supply chain, how can software help tackle the key issues? Tools that connect all trading partners, streamline the end-to-end process, and give indus...
Social and environmental compliance are the main issues facing today's apparel supply chains, according to industry experts consulted by just-style. The continued shift towards faster and faster fashi...
Fibre business Invista has moved to acquire Ashburn Hill, owner of the Tecgen flame-resistant brands, for an undisclosed sum....
US textile major Cone Denim has launched a new initiative that it hopes will take "product innovation to the next level," with a focus on developing cutting-edge fabrics and sustainable innovations....
Footwear retailer Brown Shoe Company has returned to profit during the fourth quarter, helped by higher sales and a restructuring of its business....
Internet and catalogue retailer N Brown has poached The Original Factory Shop's CEO Angela Spindler to lead the business. ...
- Cotton supply chain transparency an ongoing issue
- Supply chain takeaways from Sourcing at MAGIC
- No simple way to be sustainable, says SAC CEO
- Why voters don’t want more global supply chains
- What's 3D-printing doing for apparel and footwear?
- Li & Fung eyes supply chain speed in 3-year plan
- Nike and Crystal Group "doing well by doing good"
- Zara USA faces US$5m deceptive pricing lawsuit
- What does supply chain mapping really mean?
- EU clothing imports from China continue to plunge
- Too Many Standards
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Under Armour, Inc. (UA) - Financial and Strategic SWOT Analysis Review
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras