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. ...
- Improved supplier capabilities benefit Next
- China and Vietnam lead US apparel imports in July
- THE FLANARANT: Understand win-win or lose out
- Next H1: What the analysts say
- Abercrombie & Fitch to lose logos in fashion focus
- Brandix selects first "game-changing" innovations
- TPP talks "make progress" but issues remain
- Bagir to invest in Ethiopia as H1 loss deepens
- US cotton production set to decline
- H&M goes green with Conscious Denim
- Wool in the 21st Century: new prospects for a familiar fibre
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Global market review of denim and jeanswear – forecasts to 2020
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Global Database of the Top 1000 Cut and Sew Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details