CATALOGUE and online retailer N Brown warned that aggressive promotional discounting had cut into profit margins – but sales remained buoyant.

The group, which also owns Figleaves and High & Mighty, said price-cutting was needed to help drive revenue, which rose by 1.6% on a like-for-like basis in the 18 weeks to July 2.

The push to win customers, which N Brown said was in line with the rest of the sector, saw gross margins dip by 0.2% in the period. Total group revenue was up by 5.1%.

International sales for Simply Be in Germany and the USA are rising in line with forecasts.