N Brown reports product, group revenue rose, full-year profit expectations unchanged
Source - SMW
N Brown, the online, specialist fit, fashion retailer, announced Tuesday group revenue grew 3.2% for the 18-week period to 6 January 2018 and said full-year profit expectations remained unchanged.
The company said group revenue for the third quarter rose 3.2%, product revenue rose 2.7%, while financial services revenue grew 4.6%. While the company's USA business moved back into positive growth with revenue up 19% year-on-year or 22% on a constant currency basis.
'I am pleased with the trading performance during the period, with 2.7% product growth following 5.9% last year,' Angela Spindler, CEO, said. 'We are confident in achieving our overall profit expectations. These remain unchanged, although we expect the shape of our results to be different than previously anticipated, as reflected in our revised guidance.'
'Simply Be was our standout brand, up 14.5%,' Angela Spindler, CEO, said. 'We saw strong progress across our key strategic indicators, with online revenue up 9%, Power Brand revenue up 7.3% and the USA up 22%. The fashion market remains competitive and we invested in promotional activity across our brands and product categories, which successfully delivered market share gains.'
Online penetration increased 4ppts year-on-year to 74%, with total online sales up 9%, while 82% of new customer demand was generated online during the period, up 5ppts year-on-year, the company reported.
For the full-year 2017, 2018 the company lowered product gross margin guidance by 225bps to -250bps, from -70bps to -120bps previously as higher promotional activity is expected to weigh.
The company raised its guidance for financial services gross margin by 500bps to +550bps, from +100bps to +200bps previously. 'This is a result of a further improvement in the quality of the customer loan book, together with several initiatives improving our customer proposition launched during the year, N Brown said in a statement.
Group operating costs (excluding Depreciation & Amortisation) guidance is expected in the range of 4% to 4.5%, from +4.5% to +5.5% previously, as a result of a continued tight cost control.
At 8:06am: (LON:BWNG) Brown N Group PLC share price was -27.7p at 251.1p