New Look EBITDA up 25% despite fall in sales
New Look said its EBITDA rose by 25% in the first half of its financial year as the high street fashion retailer made significant progress with its recovery plan.
For the six months to 22 September, EBITDA was £86.9 million compared £69.4 million for the same period last year. However, group sales slipped 1.7% in the period to £710.5 million while group like‐for‐like sales, excluding VAT, dropped by 3.3%. In the UK like‐for‐like sales were also down, falling by 3.1%
The company said it had improved its gross margin in the period by reducing markdown and discount sales to boost its EBITDA. It also brought down its operating costs as part of the first phase of its recovery plan.
Chairman Alistair McGeorge, said: "These results reflect the significant progress we have made and the positive steps we have taken in our recovery plan, in spite of the continuing tough trading conditions on the High Street.
"We will continue to focus on improving our EBITDA performance as we continue to migrate to a much stronger mix of full price sales and fewer sales events. The next stage of our recovery should see sales growth return based on the product improvements being made and the better presentation of product in store.
"Whilst we remain cautious about the economic outlook for the remainder of the financial year and the continuing squeeze on customers disposable income, we are confident that the actions we've taken to address our product, brand, stores and costs will continue to build on the growing momentum of our trading performance."
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