Catalogue firm warns of price rises

The online and catalogue group said rising cotton prices and higher wages in emerging markets such as China had resulted in cost inflation of between 4 per cent to 5 per cent, meaning the group will be one of a host of retailers set to lift prices in the coming months.

N Brown's half-year results also showed the impact of subdued trading during the general election period, with like-for-like sales up 0.6 per cent in the six months to August 28.

Sales have recovered well since the election and emergency budget, up around 1.9% between July and August, rising to 2.1% in the first six weeks of the second half.

Interim figures showed a 5.5 per cent rise in underlying pre-tax profits to 44.1m and N Brown said stronger demand for its younger fashion ranges was helping offset a tough market for the hard-hit over-65s.

Sales to the 65 and over market slumped by 11 per cent as those customers - whose income is largely based on savings - continue to suffer from record low interest rates.

But sales of its younger brands targeted at under 45s raced 7 per cent higher, with Simply Be and menswear range Jacamo among those selling well.