New Look posts 0.9% uplift in third quarter UK like-for-like sales
Fashion retailer New Look saw its like-for-like sales in the UK edge up 0.9% in its third quarter as it continued to work through its turnaround plan.
New Look brand like-for-like sales declined by 2.3% to mark the third consecutive quarter of like-for-like improvement.
Meanwhile, group adjusted EBITDA rose by 78% to £78 million with underlying operating profit coming in at £38.5 million compared to loss of £5.1 million in the same period in the previosu year.
Reporting on progress with its turnaround plan, New Look said it had improved year-on-year profitability in key womenswear categories such as dresses and “tops and bottoms”, although the footwear and accessories categories had been more challenging.
It also said that ecommerce profitability had continued to increase significantly and that click and collect had risen to account for 47% of the online sales mix.
During the period New Look Belgium concluded that it was unable to continue trading and administrators were appointed. New Look also closed its China stores following its decison to exit the country.
Alistair McGeorge, New Look executive chairman, said: “Today’s results show that we continue to make good progress in delivering improved operational and financial stability despite the challenging retail environment. Our return to broad appeal product continues to enhance profitability, our supply chain lead-times have improved, and we have exceeded our planned cost savings. However, we have more work to do and our focus is now on accelerating our turnaround plans.
“Central to this is finalising our financial restructuring, which will secure the future and long-term profitability of the company. The proposed restructuring has provided our colleagues and suppliers with renewed confidence, which will benefit the company at every level.”
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