New Look increases sales and profits
Fashion retailer New Look saw its UK like-for-like sales rise by 4.3% in its third quarter as it benefited from “robust” Christmas trading.
In the 39 weeks to 26 December, pre-tax profit grew by 38.9% to £87.9 million while revenue climbed by 5.6% to £1.17 billion.
However, non-recurring exceptional transaction costs of £93.4 million relating to New Look’s acquisition by Brait resulted in a statutory loss before tax of £10.1 million.
The company said Christmas trading was robust with New Look UK like-for-like sales up 3.2% in the seven weeks to 2 January.
Anders Kristiansen, New Look chief executive, said: “In what has been perceived as a tough market this quarter, we feel pleased with this performance.
“Our preparation and readiness for the peak trading season ensured we delivered good results, despite the highly promotional environment in the UK including the competitive challenges generated by Black Friday.”
The company said its new menswear standalone stores have continued to exceed expectations and it now plans to open 15 to 20 more next year.
New Look is also continuing to expand in China and expects to have 85 stores open in the country by the end of this financial year.
Kristiansen added: “I’m pleased with our progress in China, with over 80 stores now open and one of our four priority markets which remains a key driver of growth for our business, and the continued good performance of our new standalone menswear stores, we are excited to be opening more of these in the coming months.
“We are now seeing our Spring ranges hit down in stores and are encouraged by the initial reactions by our customers.”