Comment: Encouraging trends reported at N Brown

Andy Higginson will have been pretty pleased with his first set of figures as chairman of home shopping group N Brown.

Although first-half profits were down, they came in as anticipated by the City. Of greater interest were the trends reported by the retailer, which were encouraging.

Total sales were up, there was “explosive” growth in m-commerce, which accounted for 18% of online visits, and sales to new customers climbed by 20%. The new financial year is off to a strong start with revenues up 10.1%.

N Brown is also expanding internationally, admittedly with mixed success, and becoming a multichannel retailer by adding a stores channel.

It will evaluate the shops after they have traded through Christmas, but some of the results look promising. There has, for instance, been a rise in online sales in post codes close to stores.

One concern is margin, which was affected by factors such as investing in lower price points. N Brown maintained that such tactics will bring benefits in the future.

There are wider uncertainties at N Brown, however, such as who will replace long-standing chief executive Alan White and what that will mean strategically. Until that is clear, the retailer’s stock may well pause for breath.

Pennycook adds clout to The Hut

The appointment of Morrisons finance director Richard Pennycook as a non-executive director of privately owned online retailer The Hut is a coup.

The Hut already had a star-studded list of investors on board, including Sir Terry Leahy and Sir Stuart Rose, but Pennycook brings serious clout because of his numbers background and key role in Morrisons’ turnaround.

The Hut is widely viewed as being an IPO in waiting after abandoning its original flotation timetable in the light of market conditions. Pennycook’s arrival brings a successful listing further into prospect.