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Pharma & Biotech

Weighing N Brown ahead of Tuesday’s interim results

Jacamo and Simply Be owner N Brown releases interim results on Tuesday.

Boohoo.com Plc (LON:BOO) interim blew forecasts away less than two weeks ago, expectations are high for ASOS Plc (LON:ASC) in around a week - but the bar is set lower for Jacamo and Simply Be parent N Brown Group Plc (LON:BWNG).

Adam Cochrane, UBS analyst, expects N Brown will report £29mln of profit before tax (below consensus of £30.5mln) which would be an 18% decline year-on-year. Cochrane forecasts £423mln of sales (consensus is £427mln) which would be a 1.7% improvement.

It would mark “a healthy recovery”, he added.

“The big questions will be on weakness of current trading in September and into October and whether the N Brown business model has become more flexible to offset some of the historic levels of discounting it has seen in periods of unseasonable weather,” the analyst said in a note.

Cochrane also noted that the recently announcement delay and increase cost of its ‘fit for the future’ will “likely attract a large degree of debate as to what the incremental cost is and why there was a delay.”

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