Home / Knowledge / News / Apparel/Garments / H1FY14 sales drop marginally at apparel marketer N Brown
H1FY14 sales drop marginally at apparel marketer N Brown
Oct '14
In what N Brown Group, a UK marketer of apparels called ‘A Year of Transition’, revenues slipped marginally, while profits dropped 3.2% year on year in its interim results announced for the 26 weeks period or fiscal first half ending August 30, 2014.

During the first half of 2014, total group sales declined 0.6%, from a year earlier to £407.3 million, which N Brown attributed to lower sales in JD Williams. Like-for-like sales, excluding newly opened stores, were also 0.5% lower.

Profit before taxation also fell 3.2% to £42.7 million from £44.1 million in the comparable period of fiscal 2013.

However, overall gross margin improved by 40 basis points, which the marketer said was due to an improved bad debt and financial income yield performance which has resulted from the success of its tightened credit policies.

Despite good overall cost control, particularly in payroll and in marketing as N Brown graduated from more of its spending from paper-based to digital activities, operating profit reduced by 6.6% to £45.2 million, after absorbing £1.7 million loss in the US and £0.5 million loss from the Simply Be stores.

Distribution costs rose as a result of the strong growth in the volume of smaller parcels dispatched. N Brown said it has identified around £2.0 million of cost savings within sales and administration costs, linked to the organisational and marketing changes.

Due to higher levels of average borrowings, net finance costs mounted to £3.6 million in the first half of 2014 against £3.4 million in the first half of 2013.

N Brown informed that the effective rate of tax was slightly lower at 21.7% in the period under review from 22.0% in the same period of 2013.

In the process, adjusted earnings per share fell by 7.9% to 11.56 pence also down from 12.55 pence in first half of 2013. The interim dividend stayed the same as last year at 5.67 pence.

Net assets at N Brown grew by 8.6% year on year in the first half of 2014 to £495.3 million. Net cash generated from operating activities also rose steeply from £26.1 million to £67.3 million, mainly due to an improved working capital performance.

Capital expenditure in the period rose higher to £30.8 million from £8.5 million, as a result of the investment in its business transformation programme. After funding dividends and finance costs, net debt increased by £7.3 million from first half of 2013 to £205.2 million in first half of 2014. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 27th Feb 2017

Surat to get a mega textile park, centre of excellence

The textiles ministry is positively working on the proposals for a...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: Invista

Textiles | On 27th Feb 2017

Invista explores alternatives for apparel & textile trade

Invista, one of the world's largest integrated producers of chemical...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search