NEW LOOK RETAIL GROUP LIMITED (“New Look”) Q1 19 Trading Update for the 13 weeks ended 23 June 2018
Improved financial and operational stability as turnaround continues
Financial headlines
- Revenue -2.7% to £329.4m (Q1 FY18: £338.7m)
- New Look Brand like-for-like sales -4.0% (Q1 FY18: -8.2%)
- Adjusted EBITDA stabilised, up 1.5% to £27.6m (Q1 FY18: £27.2m) supported by cost savings
- Underlying operating profit up 19.0% at £14.4m (Q1 FY18: £12.1m)
Turnaround plan highlights
Return to proven broad appeal product
- Improved sales and profitability in clothing areas addressed to date in product review
- Women’s clothing in UK stores outperformed market by 7.4 percentage points according to BRC*
Cohesive multichannel model
- In-store and e-commerce customer conversion rates improved
- E-commerce profitability increased substantially
- Click and Collect sales mix increased to 40% (Q1 FY18: 27%) driving footfall into stores
Efficiency and cost savings
- £70m annualised cost savings over-achieved in Q1 with additional savings targeted
Alistair McGeorge, Executive Chairman, said:
“We previously said that our focus is to achieve financial and operational stability. In Q1 we made good progress in stabilising profits and delivering on our cost savings plan, with encouraging green shoots seen in womenswear.
“We ended the quarter with a clean stock position and have seen improved sales performance in the areas we have addressed so far in our product review. We are confident there is more to come as we focus on our remaining product ranges.
“As we recover the broad appeal of our product, we were pleased to improve our market performance and deliver better customer conversion rates. This shows the strength and resilience of our brand, and the positive impact of the changes we are making.
“Our turnaround plans continue, and we will deliver further operational efficiencies whilst maintaining our resolute focus on our core strengths and heartland customer to ensure we remain on the right track.”
Media enquiries:
Headland
Lucy Legh
Rob Walker
Orla Swindells
+44 (0)20 3805 4822
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About New Look
New Look is a leading UK multichannel retail fashion brand, with international reach in key global markets, offering exciting, on-trend, value-fashion for women, men and teenage girls.
Our flexible fast-fashion business is built on an agile global supply chain with the ability to respond quickly to trends. We focus on delivering value for money and ‘newness’, with hundreds of new lines landing every week. Our ranges of apparel, footwear and accessories are designed with broad age appeal and global relevance. They are delivered by our great people in stores and support centres, who ensure we deliver great service - wherever, whenever and however customers choose to engage with us.
* Measured by British Retail Consortium published YTD data for the week ended 23 June 2018 for Women’s Clothing in UK Stores