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New Look clicks on online success: sales up 80 percent

By FashionUnited

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Fashion

ANALYSIS_New Look has seen its first-quarter sales improved by nearly 5 percent on a year-on-year basis thanks to an impressive 78.7 percent jump in online sales. The group saw slightly better overall like-for-like sales, up by 0.3 percent in the first

quarter. Main concern for the company at the moment is the disappointing performance of its Mim brand in France, as both analysts and the company hinted on Tuesday.

Underlying
earnings for the group rose 13.1 percent while online became the absolute rising star, with an impressive 78.7 percent boost, enhanced by the success of New Look’s click-and-collect offering, as reported ‘Irish Examiner’.

Chief executive Anders Kristiansen said he was “very encouraged by New Look’s robust trading performance”, particularly as it came in spite of the coldest spring in 50 years, reported ‘City A.M.’ He added he was cautious about the consumer spending outlook, but said improving weather conditions had contributed to a “strong” start to the second quarter.

The group has more than 1,100 stores worldwide including around 600 in the UK, while it has more than 2.5 million visits a week to its website. Further international expansion is planned in India and China.


Bad weather not a foe any longer

"April was a very difficult period for all retailers. We did have a more difficult start to the season. I am pleased to say that once the weather started to normalise so did our sales pick up," Kristiansen assured, making it clear that bad weather is not a woe to be afraid of now.

Earlier this summer, financial chief Alastair Miller said the coldest spring for 50 years in the early part of the first quarter had hindered sales.

However, back in June, New Look was pleased to announce its return to green, with annual profits of 3.1 million pounds against the 54.5 million pounds losses it incurred on a year earlier.

New Look hailed a “cracking start” to its latest trading period today after the heat wave provided a further sales boost following its recent return to profit.

Chief executive Anders Kristiansen said: “Good weather brings good business to the high street. We have had a cracking start to the second quarter.”

Despite New Look’s last trading update, which mirrors the company’s a strong second-quarter’s kick-off; the fashion retailer preferred to remain cautious for the outlook for consumer spending.
New Look