New Look posts 4.6 percent decline in Q3 like-for-like sales

The New Look Group said that its like-for-like (LFL) sales for third quarter were down 4.6 percent while year-to-date like-for-like sales declined 7 percent. Revenues in the third quarter, however increased 0.8 percent to 422.6 million pounds (522 million dollars) but declined 2.9 percent to 1140.7 million pounds (1,409 million dollars) for the year-to-date period.

Commenting on the results, Anders Kristiansen, Chief Executive Officer of New Look said in a statement, “The UK market has continued to be extremely challenging, with reduced footfall and a highly promotional environment on the high street, resulting in a disappointing like-for-like sales performance. Despite this, total sales for the quarter were level as a result of good performances outside the UK, online and in menswear, proving that our strategy of diversification is the right one for our business. It remains key to our growth to continue to diversify our offer and to invest in our priority international markets..”

Financial highlights of the period under review

Pre-tax profits dropped 37.6 percent to 30.1million pounds (37 million dollars) in the 13 weeks to December 24, 2016, while underlying operating profits were down 26.1 percent to 52.2 million pounds (64 million dollars) in the quarter.

UK LFL sales decreased 4.7 percent in the third quarter and 7.3 percent in the 39 weeks period. Sales of the company’s ecommerce platform increased 18.2 percent in the quarter and 12.9 percent year-to-date, while 3rd party ecommerce sales were up 73 percent in Q3 and 36.8 percent for the 39 weeks.

The company said that it continued delivery of positive LFL sales in China despite challenging market conditions and opened 100th store in line with targeted expansion plan. The company witnessed encouraging performance in menswear and opened four new standalone stores taking the total count to 19.

The company operates 867 stores, comprising 591 in the UK and a further 276 globally. Its e-commerce offering also serves over 120 countries worldwide.

Picture:Facebook/New Look