New Look Q3 revenues rise 5.6 percent

New Look has said that its revenue in the third quarter increased 5.6 percent to 1,175.3 million pounds (1,698.7 million dollars). New Look Brand like-for-like sales increased over 4.5 percent and UK like-for-like sales improved 4.3 percent.

“In what has been perceived as a tough market this quarter, we feel pleased with this performance. Our preparation and readiness for the peak trading season ensured we delivered good results, despite the highly promotional environment in the UK including the competitive challenges generated by Black Friday. I’m pleased with our progress in China, with over 80 stores now open and one of our four priority markets which remains a key driver of growth for our business, and the continued good performance of our new standalone menswear stores, we are excited to be opening more of these in the coming months,” opined Anders Kristiansen, Chief Executive Officer, New Look.

Financial highlights and retail expansion

While sales of its ecommerce platform witnessed a rise of 34.7 percent, third Party ecommerce sales were up 32.7 percent. The company said that it experienced a robust Christmas trading period with New Look UK LFL sales in the seven weeks to January 2, 2016 increasing 3.2 percent.

Adjusted EBITDA improved 6.4 percent and underlying operating profit rose 11.8 percent. Profit before tax (adjusted for the non-recurring exceptional transaction and refinancing costs in Q1 FY16) improved 38.9 percent.

The company continues to focus on growing its business through five strategic initiatives of brand, international expansion, multichannel, menswear and product development. The company aims to open 15-20 menswear standalone stores next year. While expansion continues in China, with 75 stores open at end of Q3, it is on track to have 85 by the end of this financial year. A further 37 stores now trading in the concept format, the company has a total of 422 stores.