16th Jan 2014 08:53
LONDON (Alliance News) - N Brown Group PLC saw revenue rise 7.2% in the six-week Christmas and New Year trading period, as its younger consumer brands Simply Be and Jacamo brands performed well and online shopping drove sales.
Outside of Simply Be and Jacamo, the company said Thursday it saw strong performances in its home categories, driven by homeware and family gifts. Menswear and footwear also performed well, although ladieswear slowed in October and early November due to "unusually mild autumn temperatures", N Brown said.
Gross margin was a little below expectations due to sales over the Christmas period.
In the 19 weeks to January 11, the company posted revenue growth of 5.2%. N Brown said its forecast for full year results remain broadly in line with expectations.
The company rolled out Click-and-Collect services across its stores, and said that the next day service accounted for 40% of demand in the Christmas week. It said it expects online penetration to increase steadily as it continues to build on its click and collect services and improve customers online experience. Online sales now account for 58% of revenue, N Brown said.
"We are applying the group's unique skills in larger-size fashion through a range of increasingly distinctive, relevant, contemporary brands across a broader base of customers and channels," said Chief Executive Angela Spindler in a statement. "We are only at the start of grasping this opportunity."
Jefferies raised N Brown's price target Thursday. Jefferies estimates that like-for-like sales were only up about 2% in the eight weeks to the end of November, but that has risen to a like-for-like increase of 7.2% over the last six weeks. Younger customer segments, the Internet channel, home ranges, menswear & footwear all continue to lead group growth, says Jefferies.
The internet and catalogue home shopping company were trading down 2.5% at 545.50 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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