N Brown sales growth slows
HOME shopping group N Brown posted a slowdown in underlying sales growth in its second quarter as its customers assessed the likely impact on their finances of the new coalition government’s policies.
The firm, which targets older and larger customers, said its like-for-like sales increased 0.1 percent in the 18 weeks to July 3.
That compares with a rise of 3.1 per cent in the eight weeks to April 24.
The firm said trading since the May 6 general election had been “subdued.”
Total revenue rose 1.1 per cent over the 18 week period.
N Brown, whose brands include Simply Be, Oxendales, Marisota and Jacamo, said its gross margin was 0.2 per cent below last year’s level, compared with an expected 0.3 per cent decline, reflecting measures to reduce bad debt.
It said the reduction will be offset by operational cost savings.
The firm added its board had confidence in the future outlook for the group.
N Brown fared better than most British retailers during the recession, helped by its position in the market. Its customers, with an average age of 57, tend to have stable incomes.