14th Oct 2015 07:13
LONDON (Alliance News) - N Brown Group PLC Wednesday reported a drop in profit in the first half of its financial year, despite a rise in revenue, as it booked costs related to store closures made as part of its effort to become a digital-led retailer.
Still, shares in N Brown were trading up 4.1% at 328.79 pence early Wednesday, one of the best performers in the FTSE 250.
The online, catalogue and stores retailer, which trades under multiple brands including House of Bath, SimblyBe, Jacomo, and figleaves.com, said its pretax profit in the half year ended August 29 dropped by over half to GBP19.4 million from GBP42.7 million the year before, which it said was due to exceptional costs relating to the closure of 18 clearance stores.
It said it will significantly lower exceptional costs in the second half of the year to between GBP2 million and GBP3 million.
Underlying trading pretax profit excluding exceptional costs, though, still declined 16% to GBP35 million from GBP41.6 million.
Revenue, however, grew 4.2% to GBP415.8 million from GBP399.2 million. Its said its turnaround of the JD Williams business is on track, with new customers up 21%, while it saw a strong performance in Simply Be and Jacomo.
N Brown maintained its interim dividend at 5.67 pence.
"Our transformation into a truly digital first, specialist-fit, fashion retailer is on track and is delivering tangible results, including good trading momentum online. We have previously communicated that this year will be significantly second-half weighted, and that remains the case. The second half has started well, with a pleasing performance in September, in line with our expectations and underpinning our confidence in the full year outturn," Chief Executive Angela Spindler said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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