International specialist fit fashion retail group N Brown continues to demonstrate that its transformational strategy, from a direct mail to a digital-first model, is on track.

Total group revenue rose 4.1 per cent in the 18 weeks to January 2, enhanced by a strong performance over the cyber weekend and the weeks following Christmas. Overseas, its fledging US business continues to perform well, seeing revenue rise 28 per cent year-on-year in actual currency over the period.

Despite the warm weather that has posed a challenge to Northern Hemisphere retailers, N Brown saw product revenue for the group rise 4.3 per cent, thanks to further improvements in product quality and fashion credentials. Along with its digital-first approach, comprehensive product modernisation and strong PR activity for Autumn Winter ’15 drove all three of its power brands to deliver double-digit growth, bridging the gap for the 50+ market and plus size fashion segments.

However, despite its digital presence in store, its store portfolio couldn’t deflect the impact of reduced footfall across the high street during this period, resulting in flat like-for-likes.

Beyond N Brown’s fashion fascias, its sustained focus to drive growth through its homewares division returned positive results. Driven by furniture, home textiles and beauty, homewares was its best performing category over the period.  

Online, positive trading momentum was helped by investment in digital marketing initiatives. Brand awareness campaigns with strong product placement saw active customers rise 1 per cent, underpinned by 12 per cent customer growth across its power brands combined. Online penetration advanced by 5 percentage points to 66 per cent, helping drive the group’s online sales increase of 13 per cent.

Continued improvements in its mobile offering saw customer usage grow, accounting for 68 per cent of all of its online traffic. However, the global release of N Brown’s new web platform has been pushed back to early 2016, having identified additional opportunities to improve the customer experience.

Encouraging transformation in the business has set the group on good ground to perform in line with its full year expectations. However, driven by its seasonal mix, from its own labels to promising collaborations with Coast for Simply Be, an update in product gross margin guidance for the year end has seen a positive change from -75 base points to flat.

• Rebecca Marks is a senior analyst with Verdict Retail.