N Brown reports 2.5 percent rise in Q1 revenues

In its trading statement for the first quarter, N Brown said that the group revenues increased over 2.5 percent and like-for-like sales, over 1.5 percent. Product revenues were up 4.3 percent and gross margin and operating costs, broadly in line with expectations. Power brands continued to outperform the wider group performance, with active customer base increasing 9 percent, ahead of the total active customer file growth of 4 percent.

In JD Williams, strategic price investments led to product revenues broadly flat. This, combined with financial services revenues down mid-single digit, resulted in total revenues slightly down year-on-year. However, JD Williams volumes were up 4 percent and new customers up 27 percent. A strong start to the year was witnessed by both Simply Be and Jacamo, driven by an improved product proposition and increased brand awareness. Both brands achieved mid double-digit total revenue growth year-on-year. Both Simply Be and Jacamo have online sales penetration of around 90 percent.

Commenting on the performance, Angela Spindler, CEO, said, “We have had an encouraging start to the year, but there remains a lot to do. We have seen double-digit growth in both Simply Be and Jacamo as the shift from support brands to our power brands continues. Although revenues were slightly down year-on-year, JD Williams continues to show signs of progress.”

Homewares reported revenue growth of 20 percent, driven by outdoor living and gifting. Performance in the USA was positive with turnover up 31 percent year-on-year, or 18 percent on a constant currency basis. The company’s new international web platform will go live in mid-2016.

Simply Be and Jacamo stores continue to perform well, with LFL sales growth of 8 percent. One store was opened at the start of the period. Compared to H1 last year, the company now has seven more stores.

The company anticipates this year to be more significantly H2 weighted than last year, with H1 PBT expected to be down year-on-year. Its first half results will be announced on October 14, 2015.