Simply Be owner N Brown swings to profit despite ongoing pressure on sales
The retailer said sales declines had improved and that trading was ‘encouraging’ since the first half.
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Your support makes all the difference.The company behind Simply Be and JD Williams has revealed it swung to a first half profit despite falling sales in a tough market and unseasonal weather.
N Brown reported pre-tax profits of £200,000 for the six months to August 31 against losses of £2.8 million a year ago thanks to cost cutting and a focus on more profitable sales.
Product revenues dropped 7.9% to £172.7 million as consumer spending remained under pressure and trading was impacted by weather, but N Brown said this was still an “improving trend”.
It had seen product sales slump 10.6% slump in the year to March.
N Brown added that trading in the first five weeks of the third quarter had been “encouraging” with product sales declines paring back to 2%.
Sales should continue to improve over the remainder of the year, it said.
The group said it was on track with expectations for underlying earnings over the full year.
The latest set of results come after it revealed in June that it bounced back with profits of £5.3 million for the year to March, having recorded a £71 million loss the prior year.
Steve Johnson, interim executive chairman and chief executive of N Brown, said: “We have built on our return to profit in 2023-24 by delivering year-on-year progression in the first half of 2024-25.
“Our focus on maximising profitable sales and managing the cost base in a soft trading environment has ensured we remain on track.”
Half-year figures for the group showed that on an underlying basis, interim pre-tax profits jumped to £3.6 million from £100,000 a year ago.
The group has been buoyed in recent months by a rise 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 in its last financial year, and Simply Be products started selling on the Sainsbury’s clothing website and in some stores.