New Look making continued progress in delivering improved operational and financial stability amid challenging retail environment
New Look, U.K base multichannel fast-fashion brand for value fashion for women, men and teenage girls, is continuing to improve YoY profitability in key womenswear categories (e.g. dresses and ‘tops and bottoms’) with some challenges being addressed in footwear and accessories. The brand has shown improvement in overall UK market share with strengthened breadth of appeal. In-store and e-commerce customer conversion rates has continued to improve YoY and E-commerce profitability continued to increase significantly.
New Look Belgium, which operates 6 stores, as unable to continue trading and administrators were appointed. The company took decision to exit retail business in China, with all stores closed as of 1st January 2019 as planned.
“Our financial results show that we continue to make good progress in delivering improved operational and financial stability despite the challenging retail environment. Our return to broad appeal product continues to enhance profitability, our supply chain lead-times have improved, and we have exceeded our planned cost savings. However, we have more work to do and our focus is now on accelerating our turnaround plans,” said Alistair McGeorge, Executive Chairman, of the company.
He continued, “Central to this is finalising our financial restructuring, which will secure the future and long-term profitability of the Company. The proposed restructuring has provided our colleagues and suppliers with renewed confidence, which will benefit the company at every level. The right capital structure and a materially deleveraged balance sheet will provide us with the financial flexibility to better attack our future amid challenging market conditions. Upon completion of the restructuring, our focus will be to further enhance profitability by continuing to provide fantastic product for our customers, building brand equity and grasping new market opportunities.”
New Look’s flexible fast‐fashion business is built on an agile global supply chain with the ability to respond quickly to trends. The brand focuses on delivering value for money and ‘newness’, with hundreds of new lines landing every week. Its ranges of apparel, footwear and accessories are designed with broad age appeal and global relevance. Founded 1969 as a single fashion store in the UK, the brand has grown to become a leading fast-fashion brand, with 593 in the UK and 302 across Europe, China and Asia. It’s transactional website newlook.com now ships to around 66 countries world-wide generating 14% of sales (FY18).
Source: New Look Headquarters U.KEurope News