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Brown (N.) Group PLC (BWNG)

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Thursday 26 January, 2006

Brown (N.) Group PLC

Trading Statement

Brown (N.) Group PLC
26 January 2006

26 January 2006

                               N Brown Group plc

                                Trading Update

Home shopping sales have increased by 11.6% in the 21 weeks to 21st January
2006, with strong performances from all our key customer groups and product
areas during the period. Excluding sales from the House of Bath catalogue
acquired in November 2004 home shopping sales for the same period were up by
9.2%. Group sales from continuing operations rose by 7.1%, which includes a £6m
reduction in House of Stirling's turnover, planned as part of our program to
discontinue low margin business.

The main driver of the sales growth has been the improved clothing and footwear
ranges, complemented by the development of new mid-season mailings to enhance
the frequency of purchasing and the average spend per customer. Sales of
ladieswear were up by 13% and our footwear range enjoyed a 24% increase in
turnover. Our younger brands, Simply Be and FashionWorld, targeted at the 30-45
age group, saw the strongest growth with sales up by 19.3%, although the core
mid-life titles also performed well generating 5.5% more turnover. Customer
recruitment campaigns have progressed well in the autumn and these new customers
have contributed to the business growth. In terms of our channels to market,
online sales increased by 60% and now represent 16% of total sales.

The mix of product sales has produced a gross margin rate on home shopping sales
which is at a similar level to last year, but it has also contributed to a 5%
reduction in the average selling price. This has resulted in higher volumes and
therefore higher operational costs than expected. Overall we are pleased with
the performance in the second half to date and expect the results for the year
to be towards the top end of our expectations.

We believe our focus on niche customers and products will continue to drive our
business forward in the year ahead.

For further information please contact:

N Brown Group plc
Alan White, Chief Executive                       Tel: 0161 238 2002
Dean Moore, Finance Director

Website :

Gavin Anderson & Company
Fergus Wylie / Charlotte Stone                    Tel: 020 7554 1400

A conference call for analysts and investors will be held at 9.30am UK Time. To
dial into the call, please call Tel: 01296 317500. An operator will answer the
call - please provide them with the pin number C 797787.

A recording of the call will be available for 24 hours, Tel: 01296 618700 / 
Pin 689943.

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