New Look sales and revenue drop as gloomy market conditions weigh on the company

 
Helen Cahill
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It's been a pretty gloomy season for New Look (Source: Getty)

New Look posted a disappointing set of results this morning, announcing a drop in sales and revenue.

The figures

New Look's UK like-for-like sales fell by seven per cent in the 13 weeks to June 25, and overall revenue fell by 4.2 per cent to £354.2m.

Adjusted operating profit was also hit, down by 29 per cent to £43.4m.

Pre-tax profit did improve, however, reaching £2.7m - up from a £73.7m loss a year ago.

Why it's interesting

Retailers have been trying to get customers onto the shop floor by offering massive discounts this summer - but it hasn't been working for everyone.

It's been a triple-whammy for New Look. Consumer confidence plummeted after the Brexit vote, footfall has continued on a downward trend, and store sales have gone in the same direction.

Read more: Everyone hit the pub after the Brexit vote and put off big-ticket purchases

And, as Hedley Aylott, CEO of retail specialist Summit, recently told City A.M., not all retailers are doing all they could online to attract customers.

Aylott said: "Even some of the top retailers in the UK are not fulfilling their potential online. Slow site speeds, long forms for customers to fill out and poor imagery is slowing the customer’s journey to purchase, and ultimately losing retailers’ sales."

What New Look said

Anders Kristiansen, New Look's chief executive, said: "We continued to manage the business for long term growth in what was a tough quarter, with unfavourable market conditions impacting high street footfall. Nonetheless, we remain confident in our proven strategy, and we delivered a strong cash position with inventories held tight."

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