N Brown hit by overhaul and warm weather

Annual profits at N Brown fell 21 per cent last year as an overhaul and unusually warm weather took their toll on the retailer.

Statutory pre-tax profit at the group, which caters for larger and older customers, fell from £96.8m to £76.3m in the year to February 28. Group sales were flat at £818m.

N Brown was hit last autumn by unseasonable temperatures, which decimated demand for coats and knitwear. It felt the effects particularly strongly, as it had shifted its marketing push from July to September, so experienced a "double whammy".

However, Angela Spindler, chief executive, said the headline numbers masked strong progress for the retailer.

During the year, it had shifted from being a primarily catalogue and direct mail-based retailer to one focused on online shopping.

This had required changes to N Brown's marketing and buying and to its management.

She said it had been "a painful year in terms of trading performance and profit" but that the group had done "the heavy lifting".

"There is lots of change to come, but we really think we have made that important transformational shift."

She added: "We have done it in a year. Some would say that is too quick . . .[But] we have bitten the bullet and got on with it, and we are seeing evidence [of progress]."

Ms Spindler said she was particularly pleased with the relaunch of the JD Williams brand, which was enjoying growth in both customer numbers and sales volumes.

While N Brown did not comment on current trading, Ms Spindler said that "when the sun shines at the beginning of the season, the opposite of the September effect, that is really helpful for fashion retailers".

Shares in the group rose 4.4 per cent to 336p.

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