Lingerie boosts N Brown growth

N Brown saw its total group revenue grow by 5.1 percent in the 18 weeks to July 2.

On a like-for-like basis, adjusting for the sales of Figleaves (acquired by the company in June 2010), revenue increased by 1.6 percent.

Figleaves is reportedly delivering improved financial results, and fashion and lingerie brand Simply Be has also performed strongly, with sales in Germany and the US rising in line with expectations.

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The brand has secured two retail sites in North West England to trial a multi-channel home shopping retail concept, which it expects to open by early October 2011.

Online sales now account for 47 percent of total revenue, up from 41 percent last year. N Brown claims that the provision of credit facilities to its customers is ‘undoubtedly a benefit in these tough economic conditions,’ and that default rates are in line with its expectations.

However, a more aggressive marketing strategy with targeted promotional discounts to help drive revenue, has led to a 0.2 percent decline in the rate of gross margin.

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