Core home shopping making gains
Home shopping retailer N Brown increased its core business operating profit by 13 per cent in the 52 weeks to February 26, to£59.2 million.

However, group turnover and pre-tax profit both shrunk after poor performance at the retailer's door-to-door operation, House of Stirling, and the disposal of its TV rental operation Teleview. The retailer's financial services arm also suffered over the year.

Turnover for the period fell to£460.3 million, from£470.5 million last year. Group profit before tax and exceptionals was down from£49.1 million last year to£44.1 million in the last accounting period.

N Brown chief executive Alan White (pictured) was keen to emphasise the progress the retailer had made on its restructuring programme. He said: 'We are pleased with the successful home shopping performance this year. N Brown is working to deliver a programme of significant change to restructure and re-focus our business model. We are concentrating on the areas where we see the strongest future growth opportunities, from our more profitable home brands and channels to market.'

Core home shopping results showed an improvement in operating profit and turnover, rising by 0.9 per cent to£416.5 million. Womenswear was level but lingerie and footwear performed strongly.

However, House of Stirling showed a reduction in sales of 27.5 per cent and an increase in pre-exceptional operating losses, from£2 million last year to£6.3 million in the last financial year.

The disposal of Teleview continues and N Brown hopes to be able to conclude a sale for the division shortly. Operating profit for the year was reduced from£1.2 million in the previous year to break-even.

One of the key tasks in the year ahead will be to integrate the recently acquired House of Bath business into its brand portfolio, giving it access to a 1 million-strong customer base in the ABC1 groups, currently the fastest-growing home shopping market, according to the retailer. The integration of House of Bath should be completed this summer.

White said: 'The clear focus on niche customers and products is starting to produce positive results. Current trading is 5 per cent up on last year in the core home shopping business and 2 per cent up on a like-for-like basis, excluding House of Bath for the 10 weeks since year-end.'

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