New Look stabilises profits in first quarter
Fashion retailer New Look has posted a 4% decline in its own brand like-for-like sales in its first quarter which was an improvement on the 8.2% drop seen in the same period in the previous year.
In the 13 weeks to 23 June revenue was down 2.7% to £329.4 million but adjusted EBITDA stabilised with a rise of 1.5% to £27.6 million.
Meanwhile, underlying operating profit was up 19% to £14.4 million in the period as the retailer implemented its turnaround plans.
Alistair McGeorge, New Look executive chairman, said: “We previously said that our focus is to achieve financial and operational stability. In Q1 we made good progress in stabilising profits and delivering on our cost savings plan, with encouraging green shoots seen in womenswear.
“We ended the quarter with a clean stock position and have seen improved sales performance in the areas we have addressed so far in our product review. We are confident there is more to come as we focus on our remaining product ranges.”
The retailer said it improved its In-store and ecommerce customer conversion rates in the period and increased its ecommerce profitability “substantially”. It also saw its click and collect sales mix rise to 40% from 27% in the same quarter last year which drove footfall into stores
McGeorge added: “Our turnaround plans continue, and we will deliver further operational efficiencies whilst maintaining our resolute focus on our core strengths and heartland customer to ensure we remain on the right track.”
