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N Brown to shut five loss-making stores

By Prachi Singh

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Report

N Brown revenues for the first quarter to June 3, 2017, increased 5.6. The company said, product revenue improved 10.2 percent driven by strong ladieswear performance, while online revenues rose 16 percent, with 71 percent of revenue now generated online, up 4ppts year-on-year. However, despite positive performance, the company has decided to close around five loss-making Simply Be and Jacamo dual-fascia stores.

Commenting on the trading update, Angela Spindler, the company’s CEO said in a press release, "We are pleased to report a good Q1 performance, with continued momentum across all of our brands and categories. As a result of ongoing weak footfall in some locations, and with a clear focus on driving financial returns across all areas of our business, we will be closing up to five loss-making stores."

Highlights of the Q1 performance

The company said that overall online traffic was up 34 percent year-on-year and for new customers, online penetration was 78 percent, up 2ppts year-on-year. During the period average selling price, average units per basket and purchase frequency all increased year-on-year.

N Brown added that the company’s new spring/summer campaigns, particularly JD Williams' ‘Spring into Summer’ and Simply Be's ‘We Are Curves’, were well-received by customers, driving strong performances during the period. JD Williams brand revenues improved 12.7 percent and Simply Be posted sales growth of 20.5 percent. Jacamo, the company said, achieved a double-digit growth in active customers, which is being partially offset by the reduction in sales of some larger ticket electrical goods, in line with the trend reported during the second half of FY17. Jacamo revenues were up 5.5 percent for the quarter.

International revenue was up 10 percent but down 2 percent in constant currency terms. Revenue from Ireland was up 17 percent and 9 percent in constant currency terms, driven by the strong ladieswear performance. Revenue from the USA was up 4 percent but down 9 percent on a constant currency basis.

Picture:JD Williams, MHP Communications

N Brown