- Underlying operating profit slumped 60%
- UK like-for-like sales dropped 7.5%
- Overall revenue down 4.4%
New Look has reported steep falls in its first-quarter sales and profits which boss Anders Kristiansen has attributed to “difficult” conditions in the UK market.
The fashion retailer recorded a 4.4% drop in revenue to £338.7m in the 13 weeks to June 24, exacerbated by a 7.5% plummet in UK like-for-like sales.
The retailer’s underlying operating profit plunged 60% to £12.1m whilst EBITDA fell 37% to £27.2m, which the business attributed to a “challenging UK sales performance and investment in strategic initiatives.”
New Look posted declines in its own-brand like-for-like sales and own-website sales of 8.2% and 0.6% respectively, while its third-party ecommerce sales rose 15.7%.
The fast-fashion retailer opened 17 new stores in China during the period, taking its bricks-and-mortar footprint in the country to 127.
The retailer, which posted a slump in full-year profits in June, also trialled a new store concept in the UK during the period.
Chief executive Anders Kristiansen said: “As expected, the UK market has remained difficult, which has resulted in a disappointing quarter of trading. We have managed the business accordingly by controlling costs, tactical investment in our strategic initiatives and enhancing our product proposition.
“We remain committed to our long-term strategy of diversifying the business and reducing our dependence on the UK high street, and are confident that we will see improvements, but expect these to take time.
“Looking ahead, we expect the consumer economy to remain fragile and challenging market conditions to persist into 2018. We will continue to manage our business prudently and focus on providing our customers with exceptional product and real value for money.”
The fashion retailer’s latest results come shortly after a raft of changes to its senior team.
The retailer’s menswear boss Christopher Englinde and footwear director Amanda Wain exited the business in June.
Shortly afterwards, New Look appointed former Zara Basic head of product Paula Dumont Lopez as its new chief creative officer, succeeding Roger Wightman.
Dumont will join the retailer in September.
The fast fashion retailer also poached Mango womenswear director Rosa Gutierrez Sanchez to bolster its buying, merchandising and design departments, although she has joined the business on a contract basis.