N Brown makes "encouraging start" as first-quarter sales rise

19th Jun 2015 07:13

N Brown, the home shopping group with brands such as Simply Be and Jacamo, said its full-year guidance remains unchanged after an "encouraging start to the year".The Manchester-based business said group turnover was up 2.5% in the first quarter ended 29 May, following a 0.1% decline over the full previous financial year.Product revenue growth of 4.3%, driven by double-digit growth at both Simply Be and Jacamo, helped to offset a 1.9% fall in turnover at its financial services division.The company said financial services revenues were affected by the change in credit policies from May 2014, as expected.Chief executive Angela Spindler said N Brown's shift from its 'Support Brands' to 'Power Brands' continued, while the company experienced a "step change" in online sales penetration, up 400 basis points at 62%."Our strategy remains on track. During the quarter we continued to streamline our organisation and our processes to embed a digital-first model," she said.For the full year, the company expects profit before tax to decline, as previously guided, due to planned investments and restructuring "together with the continued shift to a more typical retail phasing", it said.