N Brown cuts prices to drive revenue

The group, which also owns Figleaves and High & Mighty, said price-cutting was necessary to help drive revenue growth – which increased 1.6 per cent on a like-for-like basis in the 18 weeks to July 2.

The push to pull in customers, which N Brown said was in line with the rest of the sector, saw gross margins dip by 0.2 per cent in the period, but total group revenue was up 5.1 per cent.

The retail sector has suffered in recent weeks as consumers rein in their spending. The cost of living is soaring and wage growth remains muted. N Brown said menswear and footwear is growing strongly while ladieswear is down – a trend consistent with the same period last year. High inflation is hitting its core ladieswear ranges, while clothing at the higher price points is doing well.

In its brand portfolio, Jacamo, Marisota and Simply Be all performed strongly. N Brown said international sales for Simply Be in Germany and the USA are rising in line with expectations. It has also secured two sites in the north west of England to trail a multi-channel home shopping retail concept, which should start from October.

Online sales now account for 47 per cent of the total, up from 41 per cent last year. Alan White, the company’s chief executive, is also regional chairman of CBI North.

Matthew McEachran, an analyst at Singer Capital, said: “The niche nature of the business, positive demographic, customer trends and the increasing sales shift online remain key positives to the investment case.”