UK: New Look H1 profits jump despite sales slide
- H1 profit up 25.2% to GBP86.9m
- Sales down 1.7% to GBP710.5m
- Like-for-like sales declined 3.3%
Value fashion retailer New Look has today (20 November) seen its half-year profits rise 25.2% despite a decline in sales.
The company, which is in the third phase of its turnaround plan to drive sales, said EBITDA reached GBP86.9m (US$138m) for the first six months of the year, compared to GBP69.4m the prior year.
However group sales edged down 1.7% to GBP710.5m, while like-for-like sales declined 3.3%. UK like-for-like sales, excluding VAT, slipped 3.1%.
Gross margin improved a the company reduced its markdown and discount sales, and its international business saw a strong improvement.
Chairman Alistair McGeorge said: "These results reflect the significant progress we have made and the positive steps we have taken in our recovery plan, in spite of the continuing tough trading conditions on the high street.
"Our strategy to remove costs and drive margin improvement, which we have done by tightly managing stock levels and reducing markdowns, has successfully driven a 25% increase in H1 EBITDA."
The group achieved the first phase of its recovery plan to reduce operating costs and said its second phase to improve margin is "delivering strong results".
New Look, which operates more than 1,100 stores, said it refitted 26 stores during the quarter, with at least another 120 in the pipeline.
"Whilst we remain cautious about the economic outlook for the remainder of the financial year and the continuing squeeze on customers disposable income, we are confident that the actions we've taken to address our product, brand, stores and costs will continue to build on the growing momentum of our trading performance," McGeorge added.
More than 200 companies have now signed the Accord on Fire and Building Safety in Bangladesh following the collapse of the Rana Plaza factory building in Dhaka, which killed more than 1,100 people in ...
More retailers and brands have joined the Accord on Fire and Building Safety in Bangladesh ahead of the midnight deadline (15 May). ...
Representatives from more than 40 apparel brands and retailers have called for a credible action plan to address workplace safety in the Bangladesh clothing sector as the death toll from last week's R...
Malcolm Collins has stepped down as group buying director of footwear, lingerie, nightwear, swimwear and accessories at New Look after 16 years with the UK fashion retailer....
The most read stories on just-style this week include a look at the challenges Burma faces in becoming a competitive sourcing destination, Under Armour filing a trademark infringement lawsuit against ...
- M&S to launch supply chain human rights policy
- Nike reaffirms US production commitment
- VF pushes ahead on chemicals management
- M&S project benefits garment worker health
- Can the Gap brand reclaim its iconic status?
- Myanmar minimum wage set at US$3.2 per day
- China cotton stockpile auction may shake up market
- Far Eastern to invest $323m in Vietnam textile hub
- C&A to add "accurate fit" label to garments
- US retail landscape "mediocre" over next 5 years