New Look sees underlying profits grow 10.9% in H1 of 2015
The British retail group has announced its first half results for the 26 weeks ended on 26th of September 2015. After a strong first and second quarter with successful progress in China and a good performance on the menswear segment, New Look posted a revenue increase of 5.9% to £756 million in the first half-year, from £713 million for the same period a year prior.
Underlying operating profit was up 10.9% to £94.8 million, from £85.5 million in the first half of 2015. Adjusted profit before tax climbed 40.6% to £39.5 million from £28.1 million in the first 26 weeks of 2015.
“These excellent results show the strength of the New Look offer and the strategic progress we have made in our product, stores and website. Against an unpredictable consumer backdrop we are especially pleased to have seen further Q2 sales improvement and market share growth, on what were already strong Q1 figures,” said Anders Kristiansen, CEO of New Look.
The trend-led retailer, which launched its first standalone menswear store earlier this year, saw overall sales grow 4.9% on a like-for-like basis, with an own website sales rise of 37.9% and a third party e-commerce sales increase of 47.2%. The e-commerce growth was driven by new delivery options, which also improved footfall into stores.
Adjusted Ebitda was up 5.1% to £121.7 million from £115.5 million in the first half of 2015.
New Look also recorded non-recurring exceptional transaction costs of £93.2 million relating to the Brait acquisition and refinancing, resulting in a statutory loss before tax of £53.7 million in the first half-year of 2015.
Furthermore, the company posted successful progress in China, with 52 stores open by the end of the first half of 2015, and leases signed to take them to 85 by March. Over the past six months, New Look also focused on implementing its new store format, which has been already rolled out in further 34 locations.
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