Simply Be owner N Brown Group positive despite profit drop

N Brown Group Plc, the home shopping business behind clothing brands such as Simply Be and JD Williams, saw its profits fall in the half year to August 29.

While revenues rose by 4.2% to £415.8m during the 26-week period, the Manchester-based firm’s underlying trading pre-tax profit showed a year-on-year drop of 15.9%, falling to £35m.

Furthermore, N Brown Group’s statutory profit before tax decreased by 54.6% to £19.4m, which the firm has attributed to exceptional costs relating to the closure of 18 cleanance stores in August.

Despite the profit dip, the company has continued to establish itself as a more digitally focused brand. Online penetration of new customers rose by 7% during the half year, with the overall number of active customers up by 15% compared to the same point in 2014.

N Brown Group’s chief executive, Angela Spindler, said: “We have continued to execute significant changes in H1 and have delivered results in line with our expectations.

“We are adjusting our retail business model and the way we operate, transforming from direct mail-led to digital first.”

She added: “This has been driven by a clear understanding of what customers want, and fuelled by technology.”

New customer levels for the firm’s JD Williams brand rose by 21%, a performance the chief executive called “encouraging”. Meanwhile, product revenues at N Brown Group’s Simply Be and Jacamo clothing stores rose by 21.4% to £50.2m and £30.4m respectively.

Ms Spindler continued: “We have previously communicated that this year will be significantly H2 weighted, and that remains the case.

“H2 has started well, with a pleasing performance in September, in line with our expectations and underpinning our confidence in the full year outturn.”

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