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TMCNet: FREDDIE'S A FILIP AS CLOTHING FIRM SALES GIVEN A BOOST [Newcastle Journal (England)]

[January 17, 2013]

FREDDIE'S A FILIP AS CLOTHING FIRM SALES GIVEN A BOOST [Newcastle Journal (England)]

(Newcastle Journal (England) Via Acquire Media NewsEdge) CATALOGUE and online shopping group N Brown said its tie-up with former England cricket star Freddie Flintoff and a Pounds 42m campaign to attract new customers helped drive a hike in festive sales.

The Manchester-based firm, which signed Flintoff as a brand ambassador for its menswear range Jacamo last July, saw like-for- like sales rise 7.9% in the 19 weeks to January 12.

The sales growth comes after an impressive performance from its Jacamo range, which grew sales by around 30%.

Flintoff has helped design some of its products, which he models in its catalogue and online store.

The all-rounder's range features wardrobe staples such as jeans, cargo trousers, casual jackets and a classic three-piece suit.

Efforts to bring on board new customers have also paid off, with N Brown adding another 500,000 shoppers since the start of its financial year.

N Brown, which also has brands such as lingerie range Figleaves and High & Mighty, said it increased marketing costs by an extra Pounds 2m on top of the original Pounds 40m budget as it advertised across television, newspapers and online.

But the group said introductory discounts meant profit margins from sales to new customers took a hit, and it expects an increase in the number of customers falling behind with repayments. N Brown said full-year results would be "broadly in line" after the extra costs.

Matthew Taylor, retail expert at Numis Securities, said N Brown had delivered a "strong trading performance", but he cut his full- year forecast to Pounds 95m. N Brown hopes the new customer drive will continue to boost sales, while it is also reaping the rewards of investment in its online offering and gaining a foothold in the US. Online sales leapt 17% higher over the 19-week period, accounting for nearly 54% of total revenues. Alan White, chief executive at N Brown, said: "It has been pleasing to see our investments in improved online systems, more customer recruitment and revamped product ranges and pricing continuing to drive a strong sales momentum, despite the lacklustre retail environment." (c) 2013 ProQuest Information and Learning Company; All Rights Reserved.

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