The company behind fashion brands JD Williams and Simply Be has reported weaker sales as shoppers continued to tighten their belts, but hailed a return to an annual profit.
Shares in N Brown, which also owns menswear brand Jacamo, soared by nearly a fifth after it revealed it had shored up its balance sheet over the past year. The company swung to a pre-tax profit of £5.3million for the year, having recorded a £71million loss the prior year.
Nevertheless, it faced challenging market conditions with cost-of-living pressures reflected in consumer spending behaviour. It reported group revenues of £601million in the year to March, a 10th lower than the £666million reported this time last year.
N Brown said it felt the effect of cautious customer buying behaviour leading to fewer online orders. "Whilst there are signs of improvement, there is still significant pressure on household budgets and consumer confidence is low by historical standards, impacting spending on non-essential items," the company said.
It also said "unseasonable" weather conditions made it harder to sell summer ranges through the spring and July to August. But this was partly offset by an increase in the average selling price of its products, driven by price rises and by customers buying more of its premium ranges.
JD Williams launched a new premium line during the year, and Simply Be products started selling on the Sainsbury's clothing website and in some stores. N Brown has been slashing costs, including axing several positions at its Manchester headquarters earlier this year.
Chief Executive Steve Johnson highlighted the benefits for customers from new mobile-friendly websites and enhanced online product descriptions. "We are confident in our strategy and in building a stronger N Brown for all stakeholders," he stated.