Simply Be owner N Brown returns to profit despite weaker consumer demand
Shares in N Brown soared by nearly a fifth after it revealed it had shored up its balance sheet over the past year.
The company behind fashion brands JD Williams and Simply Be has reported weaker sales as shoppers continued to tighten their belts, but hailed a return to an annual profit.
Shares in N Brown, which also owns menswear brand Jacamo, soared by nearly a fifth after it revealed it had shored up its balance sheet over the past year.
The company swung to a pre-tax profit of £5.3 million for the year, having recorded a £71 million loss the prior year.
Nevertheless, it faced challenging market conditions with cost-of-living pressures reflected in consumer spending behaviour.
Whilst there are signs of improvement, there is still significant pressure on household budgets and consumer confidence is low by historical standards, impacting spending on non-essential items
It reported group revenues of £601 million in the year to March, a 10th lower than the £666 million reported this time last year.
N Brown said it felt the effect of cautious customer buying behaviour leading to fewer online orders.
“Whilst there are signs of improvement, there is still significant pressure on household budgets and consumer confidence is low by historical standards, impacting spending on non-essential items,” the company said.
It also said “unseasonable” weather conditions made it harder to sell summer ranges through the spring and July to August.
But this was partly offset by an increase in the average selling price of its products, driven by price rises and by customers buying more of its premium ranges.
JD Williams launched a new premium line during the year, and Simply Be products started selling on the Sainsbury’s clothing website and in some stores.
N Brown has taken steps to reduce costs across the business, including cutting a number of jobs at its Manchester head office earlier this year.
And chief executive Steve Johnson said its customers were benefiting from the launch of new mobile-friendly websites and more detailed product descriptions online.
“We are confident in our strategy and in building a stronger N Brown for all stakeholders,” he said.