Plus-sized retailer N Brown misses half-year target despite rise in earnings

By Daily Mail Reporter
Updated: 19:30 EDT, 11 October 2011

Shares in N Brown fell almost 2 per cent after the plus-sized retailer missed half-year profit targets despite posting a healthy 5.9 per cent rise in earnings to £44.8million.

Consensus forecasts for half-year profit was £45.2million. The catalogue and internet retailer behind the Simply Be and High & Mighty brands managed to shrug off the gloom sweeping the High Street to see a 4 per cent rise in total sales to £363.7million for the six months to 27 August.

But margins were squeezed because of fierce competition that meant the group was forced to offer promotions to woo customers. There was a 5 per cent rise in the dividend to 5.29p-a-share.

N Brown margins were squeezed because of fierce competition

Chief executive Alan White said N Brown (down 4.3p to 271.6p) had opened its first new stand-alone Simply Be stores in Manchester and Liverpool in recent days and has plans for five more in 2012.

The group, which dates back to 1859 and carved a niche as a catalogue retailer, will break through the 50 per cent sales mark with online sales within the next six months.