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New Look FY17 revenues declined 2.4 percent

By Prachi Singh

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Business

Revenues at the New Look Group for the year ending March 25, 2017 decreased 2.4 percent to 1,454.7million pounds (1,880 million dollars) against 1,490.6 million pounds (1,926 million dollars) last year. New Look brand like-for-like sales were down 6.6 percent.

Commenting on the company’s performance, Anders Kristiansen, Chief Executive Officer, said in a statement, “The retail environment is now more competitive than ever. We have seen a growing shift in customer mindset during the year to a ‘buy now, wear now’ mentality, which challenges us to be even faster in identifying and responding to trends, buying with more conviction and becoming ever more agile.”

Like-for-like sales in the UK down 6.8 percent

The company said that UK like-for-like sales declined 6.8 percent, while website sales rose 14.3 percent. New Look reported 30.9 percent jump in third party ecommerce sales during the year under review.

Adjusted EBITDA decreased 31.8 percent to 155 million pounds (200 million dollars) against 227.2 million pounds (293 million dollars), which the company said was due to sales performance and investment in strategic initiatives. Underlying operating profit declined 44.1 percent to 97.6 million pounds (126 million dollars) compared to 174.7million pounds (225 million dollars) last year. Loss before tax was 16.6 million pounds (21.4 million dollars) against 34.9 million pounds (45 million dollars) in FY16.

New Look expanded China store estate to 110 stores compared to 85 stores in FY16, recording continued positive LFL sales performance. The company also launched dedicated local language transactional websites for France and Germany. New Look also extended menswear standalone store estate to 21 stores in addition to its existing dual gender estate.

“We expect trading conditions for the coming year to remain challenging. We remain resolutely committed to delivering on our strategy for the benefit of all our customers and stakeholders and are confident we have the right strategy in place to do so,” added Kristiansen, commenting on the outlook.

Picture:New Look website

New Look