New Look expected to extend gloomy results trend


The retailer has had a tough year (Source: New Look)

Troubled retailer New Look is not expected to post an optimistic set of results this week after a tough year of trading.

The clothing retailer, which dates back to 1969 and now operates close to 600 shops in the UK as well as nearly 300 in Europe and Asia, will report its second quarter earnings this week.

In the first quarter of the financial year, New Look's sales took a dive, and management warned it would be some time before the company could make a turnaround, blaming external difficulties in the UK market.

Read more: Investors look for a deal on New Look's public debt

Following the disappointing results, chief executive Anders Kristiansen stood down at the start of September, and the company's private equity backer, South African businessman Christo Wiese's Brait, has taken a more active role.

The heavily indebted retailer has been struggling for some time, though.

Last quarter was its fifth consecutive quarter of falling sales to grapple with, and in June, New Look's directors decided not to take their bonuses as the company prepared itself for a "challenging" year ahead.

While New Look has highlighted issues on the UK's ultra-competitive high streets and with inflation-squeezed customers spending less on clothing, the company's Chinese operations are also yet to make a profit.

Tags: New Look