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Buy into N Brown's renewal

Clothing retailer N Brown has ambition plans to accelerate growth, spear-headed by new chief executive Angela Spindler.
April 24, 2014

With new chief executive Angela Spindler at the helm, clothing retailer N Brown (BWNG) is on a mission to accelerate growth over the next five years. This won't be visible when the company reports its full-year results next week - EPS is expected to rise just 1 per cent to 28p - but things should pick up markedly come 2015.

IC TIP: Buy at 512p

"After four years of pedestrian growth, N Brown is set to experience a step change and is poised to become a sustainable double-digit growth story from 2015," reckons Investec analyst Kate Calvert. "The shares already trade at a premium to the sector, but we believe the re-rating can go further."

Ms Spindler has set out ambitious plans to build the brand both in the UK and the US and to attract a wider range of customers. Product ranges will be improved along with IT processes and the online-shopping experience. There's also scope to streamline buying, while measures such as allowing cash payments online are already paying off (previously it was mandatory to take credit).