Fashion retailer New Look reduced losses in its third quarter, helped by cost control and lower markdown activity.
New Look reported a statutory loss before tax improved in the year to date to £1.2m versus a loss of £63.2m in the comparable previous period. Total revenue came in at £830.1m compared with £930.4m because of a smaller store estate as well as reduced markdown activity. Adjusted EBITDA in the quarter was flat at £36m.
Like-for-like sales in New Look’s core UK and Republic of Ireland markets slid 7.1%, ”reflecting ongoing consumer uncertainty and seasonal volatility”.
New Look said that it had controlled stock well, with a 24% reduction in units and that speed to market had improved as total lead times were reduced by nine days versus last year.
The retailer reported that it had “successfully rebalanced the mix of ’core colours’ and ’broad appeal fashion’ – those categories now represent 98% of product mix compared with 75% ‘trend’ and ‘fashion’ last year.
New Look chief executive Nigel Oddy said: ”Since moving from COO to CEO in January, my focus has been to accelerate our transformation plans and ensure we recover the broad appeal and good value cherished by our customers.
“This time last year the company lacked the financial stability needed to operate effectively and invest in the business. Now, with our strengthened liquidity position, we are able to make significant appointments to our leadership team and investments in our stores and omnichannel capabilities, which I am confident will increasingly bear fruit as we look ahead.”
“As we have said before, investing in our leadership and people will be the single biggest enabler to transforming our business and I am delighted that Helen Connolly, Clare Dobbie, Emma Hayward and David Wertheim have all joined us in recent months. Coupled with our customer strategy review, these senior management appointments form the foundations on which to grow the business once again.
“Q4 will be characterised by early spring trading in late February and March. We have confidence in our offering but remain cautious of the challenging market environment and consumer sentiment. Looking further ahead, our improved product range, enhanced lead times and omnichannel offer means we are well positioned as we focus on driving profitable sales.”
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