N Brown to trial womenswear brand on high street

By This Is Money
Updated: 10:10 EDT, 10 May 2011

The group which owns clothing websites Figleaves and High & Mighty is to trial three high street stores for its Simply Be brand later this year.

Womenswear: N Brown also owns Figleaves

Manchester-based N Brown will trial the stores in the north-west of England before deciding whether to carry out a full roll-out of the brand, which targets the plus-size market.

The group will also double Simply Be's marketing spend in the United States after an encouraging first few months of trading.

The plans emerged as the company, whose other brands include Marisota and Jacamo, revealed record revenues and profits for the seventh year in a row - up 4.2% to £718.8m and 5.5% to £98.2m respectively.

It warned this year will be challenging as the cost of goods from the Far East has risen sharply as a result of higher labour and commodity prices.

Lord David Alliance, N Brown's chairman, said: 'We are doing everything we can to cushion our customers from these rising costs but inevitably, in line with the entire clothing retail sector, there will have to be increases in selling prices.'

He also forecast that more promotional activity may be needed to stimulate sales at various times during the year.

With recent trading helped by the warm April weather, the royal wedding and the late Easter, N Brown's total sales were up 4.8% in the 10 weeks to May 7 and by 1.5% when acquisitions are stripped out.

It also maintained margins in the period, despite a 9% rise in cost prices and a higher rate of VAT. The company has clamped down on credit since the recession led to higher bad debt charges, helping profits.

Excluding the acquisition of lingerie brand Figleaves and High & Mighty, revenues rose 1.3% on a like-for-like basis in the year to February 26. Shares were 6% higher today.