N Brown warns of price rises on back of soaring costs

The Manchester-based online and catalogue group said rising cotton prices and higher wages in emerging markets such as China had resulted in cost inflation of 4-5 per cent, meaning it will be one of a host of retailers that will have to lift prices in the coming months.

However, the firm, which specialises in clothes for the fuller figure, assured that it would keep prices on hold for so-called run-through lines - items included in existing ranges.

N Brown's half-year results also showed the impact of subdued trading during the general election period, with like-for-like sales up 0.6 per cent in the six months to 28 August.

Sales have recovered well since the election and emergency budget, up about 1.9 per cent between July and August, rising to 2.1 per cent in the first six weeks of the second half.

Interim figures showed a 5.5 per cent rise in underlying pre-tax profits to 44.1 million and N Brown said stronger demand for its younger fashion ranges was helping to offset a tough market for the hard-hit over-65s. Sales to the 65 and over market slumped by 11 per cent as those customers - whose income is largely based on savings - tightened their belts amid record low interest rates.

However, N Brown chief executive Alan White said state pension increases should help counteract poor savings rates.

He also estimates that the firm's customer base, which has an average age of 57, would be more immune to this year's public spending cuts.

Sales of N Brown's younger brands targeted at the under-45s have fared well recently, racing 7 per cent higher.

The company recently bought lingerie brand Figleaves and High and Mighty as part of expansion plans, while it has also launched in the US.