New Look returns to underlying profitability
New Look has returned to profitability after underlying operating profit came in £33.2 million in the year to 30 March. This compares to a loss of £35.7 million in the previous year.
Revenue was down 3.8% which was in line with expectations. The company said this was due to its focus on driving more profitable sales with fewer stores.
Meanwhile, core -like-for-like sales were down 1.6%.
New Look has recently implemented a comprehensive restructuring. This has reduced its long-term debt and added £150 million of new capital.
The restructuring meant the company made a statutory loss before tax of £522.2 million compared to a loss of £190.2 million in the prior year. This was mainly due to a £423.3 million goodwill and brand impairment charge relating to the restructuring.
New Look’s chairman Alistair McGeorge said the company has made good progress with its turnaround and is entering the new financial year in a stronger position.
He explained: “Our ecommerce and store businesses are now working together better than ever, and we are starting to see the benefits of improved speed to market.”
New look is expecting the retail environment to remain challenging in the year ahead. It has also highlighted how Brexit uncertainty and unseasonable weather is affecting current trading.
McGeorge added: “We will continue to focus on what is in our control by further enhancing profitability through our fantastic product, building brand equity and grasping new market opportunities.
“As New Look celebrates its 50th anniversary this year, I remain confident in the strength and appeal of the New Look brand.”
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