New Look is the latest in a series of predominantly high street retailers to post flagging sales and profits for the 2016-17 fiscal year. In New Look’s case sales fell by 6.8 per cent to £1.45bn on a like for like basis despite gains in online sales. Its own website sales rose by 14 per cent and those transacted via third party sites increased by 30.9 per cent. The brand remains heavily reliant on high street sales where, it seems, only those with a smaller number of destination stores are making headway. Adjusted EBITDA at New Look fell by 31.8 per cent to £155 million though the business had invested in additional stores in China during the year. It now operates a stable of 592 UK stores and 280 overseas.
Commenting on the year, and strategies for the ongoing trading climate CEO Anders Kristiansen said “Our industry continues to evolve; immediacy and convenience matter more than ever before in the search for great fashion. Our customers need to absolutely clear what we stand for and to feel inspired by what we do. We are renewing our determination to offer even more compelling lead-in entry prices across our ranges. By being faster on the latest trends and acting with added conviction, we will reduce reliance on promotions and discounting”.
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