New Look narrows losses despite revenue dip
Fashion retailer New Look narrowed its losses in the first half despite a dip in revenue, as it reviewed its product range.
In the half year to 28 September, the company's statutory pre-tax loss narrowed to £11.2m from £41.9m in the same period a year ago, even as revenue fell to £523.8m from £601.1m. Like-for-like sales in the UK and Republic of Ireland declined 7.4%, reflecting "ongoing consumer uncertainty and seasonal volatility".
Adjusted earnings before interest, taxes, depreciation and amortisation fell to £42.6m from £62.5m.
New Look said it had reduced production options in store buy 25%, while online options have been cut 32% "to enhance customer experience".
Executive chairman Alistair McGeorge said: "This time last year we were forced to trade for cash to meet our interest obligations and we lacked the financial stability needed to operate effectively and invest in the business. Now, with our financial restructuring complete, we are in an entirely different position, with a materially deleveraged balance sheet, lower cash debt servicing costs and strengthened liquidity.
"Even set against the tough trading conditions of H1, we enter H2 with much improved operational foundations and a healthy balance sheet capable of weathering continuing volatility in the retail and consumer environment. Whilst we do not expect the retail environment to improve, we expect a better second half performance as we focus on driving profitable sales, maintaining strong control over our cost base and investing prudently in our people."