UK: New Look FY profit boosted by UK, online
- Underlying operating profit up 17.7% to GBP163m
- Revenue up 10.7% to GBP1.46bn
- Driven by UK/online, but international sales fall
Underlying profits at New Look are up 17.7% for the year
Fast fashion retailer New Look posted another rise in full-year underlying profits, up 17.7% to GBP163m (US$239m) on the back of rising UK and online sales.
The UK company said revenues were up 10.7% to GBP1.46bn in the year to 27 March, driven by a 5% rise in UK like-for-like sales and increased market share for its online store.
Group like-for-likes edged up 1.2%, with the strong UK performance offset by a 12% fall in international like-for-likes, thanks to market conditions in Ireland and France.
New Look said its share of the UK market had risen from 4.7% to 5.2% during the year, adding that it was now the third biggest online fashion retailer in the UK with a 4.1% market share.
By year end, the New Look ecommerce site was operating across 24 of the company’s markets, it added.
The company said it faced two main challenges in the year ahead: tough comparative figures in the first half, and the uncertain economic recovery in the UK, subject to pressures from tax increases, the weakness of the pound and rises in unemployment.
Chief executive Carl McPhail said the results highlighted the strengths of the company’s strategy.
“We remain confident in the fundamental value of our business and our strong future growth prospects, and expect to make continued progress as we focus on driving the business at home, internationally and online,” he added.
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