New Look to continue expansion of menswear stores amidst positive Q1 results

Following a major restructuration process that took place in the first quarter of the year, which included the sale of New Look's equity to Brait and a major debt refinancing, the UK-based retailer announced positive results for the first quarter ended on June 27. Revenue was £369.8m, up 4.3% from £354.4m, while the company grew by 4.1% on a like-for-like sales basis.

“These strong results demonstrate New Look’s ongoing progress during a quarter in which we have changed ownership and refinanced the business. Further UK sales growth is particularly encouraging, whilst our latest successful store openings in China ensure our expansion plans continue on track," said Anders Kristiansen, CEO of New Look in a press release. “Whilst the consumer environment remains unpredictable, we continue to manage the business accordingly.”

The company's adjusted EBITDA was £61.1m, an increase of 2% from £59.9m gained in the same period last year. Meanwhile, New Looks' underlying operating profit rose to £47.3m, up 6.8% from £44.3m. The label also saw a 97% jump in online orders on its mobile site, which now account for 50% of its total website traffic.

The UK clothing chain, which was founded in 1969, also announced the opening of five new menswear standalone stores, following positive reaction to the renovation of its menswear areas. New Look also revealed 23 further stores trading in concept format, bringing total number of stores in new layout to 351 at the end of the quarter.

With 39 stores now open in China, the retailer also plans to continue its expansion plan with 40 further stores openings signed up for the full year.

New Look was taken over in May by Brait, South African billionaire Christo Wiese's equity vehicle, in a deal that reached £1.9bn. The costs of the Brait acquisition and a subsequent refinancing reached £93.0m, resulting in a statutory loss before tax of £73.7m.

Written by Barbara Santamaria