New Look posts slump in like-for-like sales
Fashion retailer New Look has reported a tough first quarter with a slump in like-for-like sales.
In the 13 weeks to 25 June, New Look branded like-for-like sales dropped by 6.6% while like-for-likes in the UK fell by 7%.
There was a 4.2% decline in revenue to £354.2 million while adjusted EBITDA was down 29% to £43.4 million. Profit before tax was £2.7 million compared to a loss of £73.7 million in the same quarter last year when New Look faced exceptional transaction costs relating to a change of ownership and bond refinancing.
Anders Kristiansen, New Look chief executive, said: "We continued to manage the business for long term growth in what was a tough quarter, with unfavourable market conditions impacting high street footfall. Nonetheless, we remain confident in our proven strategy, and we delivered a strong cash position with inventories held tight.”
Meanwhile, New Look’s own website sales rose by 9% while third party e-commerce sales were up 28.7%.
Kristiansen said the company continued targeted investment across its strategic initiatives in the period, particularly in menswear and in China. He added: “Menswear sales are up 21% as we continue to roll out our standalone stores and deliver a stronger product offer, while in China we launched on JD.com and opened 9 new stores in the quarter, taking us to 94 in total."
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