N Brown Group has announced a 3.2% increase in group revenues for the 18 weeks to 16 January 2018, and has unveiled a new partnership with Zalando set to launch in the spring.
The revenue rise was fuelled in part by a 14.5% sales boost for its Simply Be brand, while overall product revenue rose by 2.7%. Financial services revenues were up by 4.7% for the period. CEO Angela Spindler also noted that the business had had a “record-breaking” Christmas.
N Brown also formally announced a new partnership with internet retailer Zalando, under which Simply Be and Jacamo join the site, operating across 15 countries. A total of 40 lines from Jacamo launched on the site last month, and 50 lines from Simply Be will launch in the spring.
During the third quarter, N Brown’s online product revenue was up 9%, and sales in the USA recorded a 22% rise. However, while sales in N Brown’s “power brands” rose by 7.3%, secondary brand sales dropped by 8.4%.
While full-year profit guidance remains unchanged, gross margin expectations have been revised downwards. This was attributed to higher promotional activity.
Commenting on the results, Spindler said: “We saw strong progress across our key strategic indicators, with online revenue up 9%, power brand revenue up 7.3% and the USA up 22%. The fashion market remains competitive and we invested in promotional activity across our brands and product categories, which successfully delivered market share gains.
“We are confident in achieving our overall profit expectations. These remain unchanged, although we expect the shape of our results to be different than previously anticipated, as reflected in our revised guidance.”