New Look reports fall in sales and profit
Fashion retailer New Look has described its UK market as “extremely challenging” as it reported a 4.6% fall in third quarter like-for-like sales.
In the 13 weeks to 24 December, UK like-for-like sales dropped by 4.7%. This means that UK like-for-like sales in the year to date have dropped by 7.3%.
During the period, pre-tax profit declined by 37.6% to £30.1 million.
Anders Kristiansen, chief executive of New Look, said: “The UK market has continued to be extremely challenging, with reduced footfall and a highly promotional environment on the high street, resulting in a disappointing like-for-like sales performance.
“Despite this, total sales for the quarter were level as a result of good performances outside the UK, online and in menswear, proving that our strategy of diversification is the right one for our business.”
The company expects UK trading conditions to remain challenging throughout its fourth quarter and into the new financial year although it said it is well positioned and will continue to invest in key strategic initiatives.
Kristiansen added: “We are clear on the actions needed to capture customer spend, but these will take time to implement. While we expect 2017 to be tough and are setting our plans accordingly, we strongly believe in our ability to continue to execute our strategy.”
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