Losses widen at New Look but 'underlying profitability' improves

For the 53 weeks to March 30, 2019, New Look Group said revenue declined 3.8 percent to 1,239 million pounds (1,580 million dollars), while like-for-like sales were down 1.6 percent compared to 11.6 percent in FY18. New Look added that FY19 statutory loss before tax was 522.2 million pounds (666.5 million dollars) compared to loss of 190.2 million pounds last year, driven by 423.3 million pounds goodwill and brand impairment charge relating to the restructuring.

Commenting on the full year trading, Alistair McGeorge, the company’s Executive Chairman, said in a statement: “We have achieved a remarkable amount over the past year, delivering on our aim to achieve financial and operational stability. Whilst New Look enters the new financial year in a fundamentally healthier and stronger position, in many respects today marks the starting line. We have more work to do to enhance trading and deliver further operational improvements as we continue our turnaround plans.”

The company's core adjusted EBITDA increased to 80.2 million pounds (102.3 million dollars) compared to 18 million pounds in the previous year, while core underlying operating profit was 33.2 million pounds (42.3 million dollars) against loss of 35.7 million pounds recorded in FY18.

The company implemented comprehensive restructuring on May 3, 2019 with long-term debt significantly reduced from 1,350 million pounds to 350 million pounds and addition of 150 million pounds of new long-term capital.

Picture:Facebook/New Look