Shares in N Brown (BWNG:AIM) have enjoyed a bounce since early summer, taking year-to-date gains to the best part of 60% as investors applaud progress against CEO Steve Johnson’s multi-year transformation plan.

The turnaround of the Manchester-headquartered online clothing and homewares seller is all the more impressive considering a soft trading backdrop and 2024’s unseasonal weather.

N Brown whose fashion brands include JD Williams, headline sponsor for ITV (ITV) dating reality show My Mum, Your Dad and whose new brand ambassador is Gok Wan, returned to profit for the year to February 2024.

The company, which also owns fashion brands Simply Be and Jacamo, built on this achievement with encouraging results (10 October) for the half to August 2024. These revealed a surge in adjusted pre-tax profits from £100,000 to £3.6 million driven by cost efficiencies, a stronger focus on ‘profitable trade’ and a lower interest bill, with net debt down almost 20% to £211.6 million.

While first-half revenue decreased by 6.7% to £277.2 million, with product and financial services revenue going backwards, management flagged an improving sales trend through the half and into the third quarter, giving N Brown the confidence to leave its full year 2025 outlook unchanged.

‘We are not letting ourselves become carried away though,’ commented house broker Shore Capital. ‘There is more to do and deliver, but this update allows us to be as encouraged about N Brown’s equity thesis as we have been for some years.’

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