Brown (N.) Group PLC
14 January 2008
Interim Management Statement and Trading Update
N Brown Group plc, the home shopping retailer, today announces a trading update
for the 20 weeks ended 12th January 2008.
Group sales both in total and on a like for like basis have increased by 14.0%.
Sales are now exclusively derived from our home shopping business following the
disposal of Zendor, our fulfilment business, in December 2007. This upward
momentum in sales growth has been delivered across all key customer groups and
product ranges, including a strong performance from ladies clothing.
Sales from our established customers have been ahead of our expectations due to
higher response rates and an increase in average spend, driven by improvements
to our product ranges, catalogues and websites. In addition sales from new
customers recruited in the second half have increased by 30%. This is as a
result of significant extra recruitment advertising for both existing catalogue
brands and the new titles launched in 2007, namely Simply Yours, Marisota and
Jacamo. Online sales growth has accelerated to 48% in the period from 40% in the
first half, and orders taken over the internet now account for 28% of our total
sales.
In the period gross margin is 0.5% below last year's rate, in line with our
expectations, due to the ongoing changes in customer and product mix. Additional
operational cost savings have more than offset this margin decline and funded
the expanded customer recruitment and reactivation campaigns which will provide
a stronger customer file from which to trade as we enter our new financial year.
The financial position of the group remains stable and has not significantly
changed since the interim results.
The success of our overall strategy to focus on niche customers and products is
evidenced by our continued sales growth, which has been achieved despite the
postal strike in October 2007, and the impact of other external retail market
conditions. The board is confident that we can meet our profit expectations for
the 53 weeks to 1st March 2008 and that we are well placed for the next
financial year.
ENDS
The company will be hosting a conference call for analysts and investors at 8:00
am GMT today. Participants are invited to call five minutes prior to this time.
Direct Dial-in number 01296 31 7500
Passcode 620 380
A replay facility will be available for a week after the announcement:
Dial-in number 0207 136 9233 and passcode 1068 8295
For further information please contact:
N Brown Group plc
Alan White, Chief Executive Tel: 0161 238 2202
Dean Moore, Finance Director Tel: 0161 238 2208
Website: www.nbrown.co.uk
Gavin Anderson & Company
Fergus Wylie / Clotilde Gros Tel: 020 7554 1400
This information is provided by RNS
The company news service from the London Stock Exchange
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