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N Brown H1 profits down, reduces full-year outlook

By FashionUnited

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REPORT_ For the 26 weeks ended August 30, 2014, N Brown reported total Group revenues of 407.3 million euros,

which were down 0.6 percent. Operating profit stood at 45.2 million pounds, a decrease of 6.6 percent; profit before tax was down 3.2 percent. While the second half financial performance was affected by weak September sales, company has also reduced it guidance for the full year.

Commenting on the interim update, Andrew Higginson, Chairman, said, “In a period of substantial change in our business, lower first half profits are largely attributable to the planned later phasing of our product season and marketing activities as well as the changes we have made to our credit policies. The benefits of re-phasing will not flow through as expected during the second half as a result of the very difficult market conditions across the clothing sector in recent weeks.”

“In re-setting expectations for the full year, the Board believes it is taking full account of these pressures on performance and also giving the management team the time and space it needs to push on with the necessary programme of modernisation which is equipping the business to access faster growth in the future,” added Higginson.

Angela Spindler, Chief Executive, further said, “We have stepped up the pace of change in the business designed to unlock the potential value we see in a proposition built around fashion that fits. In modernising the way we operate and the way we go to market, we are focused on: attracting more customers by raising brand awareness and broadening our appeal; building customer loyalty through further product and service improvements; and creating a modern scalable infrastructure so that the business is fit for the future. Despite the negative effects of recent market conditions on performance, I am confident that we are taking the right actions and are making good progress.”

N Brown