Trading Statement

Brown (N.) Group PLC 26 January 2006 26 January 2006 N Brown Group plc Trading Update Home shopping sales have increased by 11.6% in the 21 weeks to 21st January 2006, with strong performances from all our key customer groups and product areas during the period. Excluding sales from the House of Bath catalogue acquired in November 2004 home shopping sales for the same period were up by 9.2%. Group sales from continuing operations rose by 7.1%, which includes a £6m reduction in House of Stirling's turnover, planned as part of our program to discontinue low margin business. The main driver of the sales growth has been the improved clothing and footwear ranges, complemented by the development of new mid-season mailings to enhance the frequency of purchasing and the average spend per customer. Sales of ladieswear were up by 13% and our footwear range enjoyed a 24% increase in turnover. Our younger brands, Simply Be and FashionWorld, targeted at the 30-45 age group, saw the strongest growth with sales up by 19.3%, although the core mid-life titles also performed well generating 5.5% more turnover. Customer recruitment campaigns have progressed well in the autumn and these new customers have contributed to the business growth. In terms of our channels to market, online sales increased by 60% and now represent 16% of total sales. The mix of product sales has produced a gross margin rate on home shopping sales which is at a similar level to last year, but it has also contributed to a 5% reduction in the average selling price. This has resulted in higher volumes and therefore higher operational costs than expected. Overall we are pleased with the performance in the second half to date and expect the results for the year to be towards the top end of our expectations. We believe our focus on niche customers and products will continue to drive our business forward in the year ahead. For further information please contact: N Brown Group plc Alan White, Chief Executive Tel: 0161 238 2002 Dean Moore, Finance Director Website : www.nbrown.co.uk Gavin Anderson & Company Fergus Wylie / Charlotte Stone Tel: 020 7554 1400 A conference call for analysts and investors will be held at 9.30am UK Time. To dial into the call, please call Tel: 01296 317500. An operator will answer the call - please provide them with the pin number C 797787. A recording of the call will be available for 24 hours, Tel: 01296 618700 / Pin 689943. This information is provided by RNS The company news service from the London Stock Exchange
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