Trading Statement

Brown (N.) Group PLC
22 January 2004


22 January 2004

                               TRADING STATEMENT


N Brown Group sales for the 20 weeks to 16th January 2004 were up by 3.2%.  Core
home shopping sales are up by 3.3%, well above the home shopping sector which
has seen a significant reduction in sales.  However, the impact of an increased
level of discounting and higher bad debt provisions have combined to reduce the
gross margin rate by 2.1 percentage points in the second half  compared with
last year.

The industrial action within Royal Mail in the Autumn resulted in a significant
disruption to sales patterns and cash receipts during our peak trading period.
We responded to this by launching extra promotional activity which recovered
some of the sales shortfall during December but at a significantly reduced
margin.

We have now completed a review of the profitability of our many credit packages
which has resulted in a selective reduction in customer credit limits to enhance
profitability.  We have also tightened up the availability of interest free
credit which is used mainly to promote the sales of higher priced electrical and
furniture products.  Both of these actions will reduce the rate of bad debt
overall.

Whilst the results for the year to end February 2004 will be below our
expectations we have focussed on maintaining our active customer base, which has
been at the expense of short-term margin, and we have recruited 5% more new
customers during the Autumn than in 2002.   Our Spring/Summer 2004 catalogues
contain more fashionable and expanded product ranges and we believe will have a
wider appeal to our customer database.

Alan White, Group Chief Executive said:

'I am pleased to be able to report solid sales growth during the period in a
challenging environment albeit at the expense of gross margins.   Looking ahead,
we are starting to see some encouraging signs from our Spring/Summer catalogues
and the continuation of this will be pivotal to our progress in the next
financial year.'


For further information please contact:


N Brown Group plc                                    Tel: [phone]
Alan White, Chief Executive
Dean Moore, Finance Director

Gavin Anderson & Company                             Tel: [phone]
Neil Bennett/Charlotte Stone

Website address: www.nbrown.co.uk


                      This information is provided by RNS
            The company news service from the London Stock Exchange