N Brown, the home shopping company which specialises in clothes for fuller-figured women, has defied the misery clouding the high street with a 20 per cent rise in profits.

Online sales and younger shoppers helped group profits before tax rise 19.6 per cent to £40.8 million in the first half of the year, beating analysts' expectations of £37.6 million. Online sales grew 45 per cent to £106 million and represent 33 per cent of total revenue.

Most of N Brown's customers are aged between 45 and 65 and sales in this group grew 9 per cent to £214 million but catalogues and clothing lines, aimed at the under 45s, showed the fastest rate of growth, with sales increasing 21 per cent to £94 million.

Ladieswear sales rose 9 per cent to £182 million, boosted by celebrity designers including the former Clothes Show presenter Caryn Franklin. Gok Wan, presenter of Channel 4's How to Look Good Naked, has recently been recruited to design a range of corsetry. Menswear sales rose 24 per cent to £26 million.

Alan White, the chief executive, acknowledged the difficult economic climate but said that the company could look ahead with confidence on the strength of second quarter sales so far.

"The uncertain length and depth of the economic downturn still worries retailers generally, but the increase in sales for the first five weeks of 11.8 per cent, gives us confidence that we can continue to deliver growth in the second half."

Despite the upbeat results and outlook, Lord Alliance of Manchester, the chairman, said in a statement that the company would be "keeping a tight control on costs", and that it had reined in its credit policies for customers.

He said: "The length and depth of the economic downturn could ultimately have an impact on our customers' financial situation but, in the meantime, we are continuing to develop the business," he said.

"As a precautionary measure, we have tightened our credit policies and will monitor closely any changes in the performance of the debtor portfolio."

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