THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
New Look sees profits slump by 40%

Fashion retailer New Look has reported that its underlying operating profit for the year to March was £98 million, down from £162.7 million in the previous year.

CITY & CORPORATE

New Look sees profits slump by 40%

Fashion retailer New Look has reported that its underlying operating profit for the year to March was £98 million, down from £162.7 million in the previous year.

The private equity-owned company said sales at UK stores open at least a year dropped 7.1% in the second half of the year following a 4.5% fall in the first half. International stores posted better results with sales on the same basis up 0.5%, compared with a 2.4% increase in the first half of the year.

Executive chairman Alistair McGeorge said: "Clearly these are disappointing results, reflecting a business that was suffering significant internal disruption against the backdrop of a harsh and deteriorating consumer economy." 

He was referring in part to the operational problems the company experienced when it relocated its buying, merchandise and design teams.

McGeorge continued: "Additionally, we allowed our price architecture to drift upwards, which undermined our competitiveness and relative value positioning in the marketplace."

New Look appointed McGeorge, the former Matalan chief executive, as executive chairman following chief executive Carl McPhail’s departure in March. 

The company said it was focusing on delivering with greater consistency, what its customers expected – "great fashion at great prices”. McGeorge added: "This is a business with a strong brand and fantastic people and we are confident that we have put in place the right first steps to ensure New Look is returned to sustainable growth.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues