New Look reports decline in sales
Fashion retailer New Look has reported a 10.6% decline in group like-for-like sales in the 39 weeks to 23 December after it experienced “challenging” trading in its third quarter.
UK like-for-like sales were down 10.7% in the period as group revenue fell by 6.3% to £1.07 billion. In addition, the company made an underlying operating loss of £5.1 million.
Alistair McGeorge, New Look executive chairman, said: “As we expected, Q3 trading remained challenging, with sales and margins impacted by the high level of discounts.
“Our immediate priority is to exit the current financial year without excess stock. By entering FY19 with clean stock levels we will be in a good position to deliver a strong full price Spring/Summer offer.”
The company said it is working to get the business back on track with a focus on reducing costs, recovering the broad appeal of its products and reconnecting with customers.
Initiatives include realigning pricing to offer better value, having a more flexible buying model, and improving the company’s speed to market.
McGeorge added: Additionally, we are working hard to achieve a better alignment between ecommerce and stores. Taken together, this will help to drive future full price sales.
“We have a great brand supported by brilliant people, and I am confident we are taking the necessary actions to rebuild our position within the UK market and restore long-term profitability.”
