Bad debt is increasing at N Brown, the specialist home shopping company, as it widens its customer base to include younger customers.

The company said today that the rising level of bad debt had impacted its gross margin during the 20 weeks to July 14, 2007, by 1.3 per cent but added that the reduction in margins had been offset by increased cost savings.

N Brown traditionally caters to larger customers with an average age of 58.

However, last year it changed its credit policy to allow customers that would not normally be allowed to buy and defer payments to increase sales of its clothing and footwear to shoppers aged 35 years old and below.

N Brown reported a 15.8 per cent rise in sales over the period, with like-for-like revenue up 11.1 per cent ahead of its annual general meeting later today.

Sales from internet shoppers contributed 27 per cent to total revenues during the 20-week period.

The company admitted that sales of its summer apparel had suffered because of the poor weather in May and June, adding: "Our performance will now depend on the late summer and autumn catalogues".

Shares in the company dipped from 322.75 to 321p in early trading.

N Brown also said today that it was increasing the range of its clothing, up to size 30.

A spokesman for N Brown said: "What we are finding is that the larger customer is becoming more fashion conscious and it is difficult for them to buy clothing on the high street."

Tempus: Bigger is better

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