Is N Brown Group plc A Better Investment Than Unilever plc, ASOS plc, Diageo plc And Boohoo.Com PLC After Q3 Update?

Will N Brown Group plc (LON:BWNG) (LSE:BWNG.L) outperform share market peers Unilever plc (LON:ULVR) (LSE:ULVR.L), ASOS plc (LON:ASC) (LSE:ASC.L), Diageo plc (LON:DGE) (LSE:DGE.L) and Boohoo.Com PLC (LON:BOO) (LSE:BOO.L)?

N Brown Group plc
N Brown Group plc

N Brown Group plc (LON:BWNG) (LSE:BWNG.L) has released a Q3 update to the stock market today. Group revenue has increased by 4.1%, whilst product revenue is 5.9% higher. It is on track to meet full year expectations, with financial services revenue down 0.5% and diluted by non-interest lines.

Investors are likely to be upbeat about N Brown’s online revenue growth of 12% in Q3. Penetration is now at 70%, which is 4 percentage points higher than last year. About 77% of new customer demand is now generated online, which shows the company’s investment in digital has been successful thus far. The company’s Power Brands saw revenue rise by 10% and the active customer file is now up 13%.

Shares in N Brown have risen by over 9% today following the release. It continues to operate in a difficult trading environment and is still investing in and delivering on its transformation plan. However, today’s update shows it is making progress and its shares are responding positively, with investor sentiment improving significantly.

In the last month, shares in N Brown have risen by 1%. That’s behind the investment performance of stock market peers Unilever plc (LON:ULVR) (LSE:ULVR.L), ASOS plc (LON:ASC) (LSE:ASC.L), Diageo plc (LON:DGE) (LSE:DGE.L) and Boohoo.Com PLC (LON:BOO) (LSE:BOO.L). Unilever’s stock is up 4%, Diageo’s shares are 3.5% higher, ASOS shares are up 8% and Boohoo’s stock has gained 7.5% in the last month.

In my view, N Brown has long term investment appeal. I feel in the short run it could struggle, as could the wider stock market, due to the possible negative impact of Brexit. I believe UK retailers could be volatile investments, so I’m not looking to trade N Brown via a CFD or spread betting account. However, over a longer timeframe I believe it will perform well versus its sector and the wider share market. Therefore, I believe it could make for a good investment, although a relatively volatile one.

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