Simply Be owner N Brown returns to profit despite falling sales

Simply Be owner N Brown bounced back and made a profit in the first half even though sales continued to decline due to bad weather and difficult market conditions.

The Manchester-based online fashion retailer reported a profit of £200,000 for the six months to the end of August, compared with a loss of £2.8m during the same period last year.

It attributed the result to lower administrative and payroll costs, a greater focus on “profitable trading” and a track record of improving billings.

But total revenue fell 6.7 per cent to £277.2 million, largely driven by product sales falling by 7.9 per cent as “unseasonable weather” slowed Demand for seasonal ranges and consumer spending remained subdued.

However, although total orders fell 8.1 per cent to 3.4 million, the average transaction rose from around £83.30 to £84.10.

And in the first five weeks of the third quarter, N Brown said product revenue was down just 2 percent year over year.

N Brown also expects sales to continue to recover in the second half of the financial year, partly supported by increased marketing spend.

In addition to this, it forecasts adjusted annual earnings before unpleasant problems to align with management’s expectations.

Steve Johnson, chief executive of N Brown, said: “Our focus on maximizing profitable sales and managing the cost base in a soft trading environment has ensured we remain on the right track.”

Founded in 1859, N Brown owns menswear brand Jacamo and womenswear brands Simply Be and JD Williams, whose brand ambassadors include TV stars Gok Wan, Davina McCall and Amanda Holden.

In 2023, JD Williams launched a new premium line aimed at middle-aged women called Anthology and was named title sponsor of ITV reality dating show My Mum Your Dad.

More recently, Jacamo launched ‘Men’s Style’. Sorted’, while Simply Be started its ‘Find That Feeling’ campaign for the Autumn/Winter season.

In the last financial year, N Brown returned to a £5.3m profit after posting a pre-tax loss of £71.1m in the previous 12 months.

N Brown Group Stock They rose 1.8 per cent to 28.5 pence by mid-afternoon on Thursday, taking their gains to about 68 per cent this year.