N Brown sales improve 3.6 percent in Q4

N Brown Group in its fourth quarter trading statement ending February 28, 2015 said that its sales improved 3.6 percent owing to recovery in trading momentum against the challenging autumn season. Full year sales remained flat year-on-year. Full year percentage gross margin was in line with expectations. The company for the full year 14/15 expects continuing PBT to be slightly below the range previously guided.

The company saw further acceleration in online sales penetration with 62 percent in Q4, up from 59 percent last year. Brands under the group portfolio, JD Williams, Simply Be and Jacamo performed well during the quarter, with active customer file growth of 5 percent. Product volume growth during the quarter under review, increased by 11 percent driven by further product improvements and price investment.

Commenting on the performance, Angela Spindler, CEO, said, “We are very encouraged by the momentum seen during Q4, both in terms of trading and strategic progress. Whilst we are disappointed by the slower than anticipated progress from a profit perspective, we enter our new financial year with huge enthusiasm about the exciting journey ahead.”

With its recently launched TV campaigns featuring Lorraine Kelly for JD Williams, the company anticipates further gains. The USA continues to perform in line with expectations.

Following a review of the business and its future profit potential, the Board has decided to close the Gray & Osbourn catalogue business. The closure of this business will have an immaterial impact on continuing PBT both in full year 14/15 and in the future. The company expects gross margin to be100bps to flat year-on-year and group operating costs up mid-single digit year-on-year.