Fashion Retailer Seeks Recovery Amid Challenges
- New Look reports an operating loss of £74.3m for the year to 24 March 2018
- Revenue dropped by 7.3% to £1.35bn during the same period
- UK like-for-like sales decreased by 11.7%, own website sales fell 19.2%
- Third-party e-commerce sales increased by 15.5%
- Adjusted EBITDA loss of £10.7m, including £34.2m in one-off costs
- Company voluntary agreement (CVA) approved in March led to £40m cost savings and £30m on marketing, inventory shrinkage, delivery, and efficiency improvements
- 80% of products will be priced under £20 to offer better value
- Executive chairman Alistair McGeorge: ‘Turnaround plan is underway and operational improvements made’
- Focus on stabilizing business and reconnecting with customers
Fashion retailer New Look has reported an operating loss of £74.3 million for the year ending 24 March 2018, alongside a 7.3% drop in revenue to £1.35 billion. The company’s UK like-for-like sales fell by 11.7%, while own website sales dropped by 19.2%. However, third-party e-commerce sales increased by 15.5%. New Look also revealed an adjusted EBITDA loss of £10.7 million, including £34.2 million in one-off costs. The retailer has implemented a Company Voluntary Agreement (CVA) to lower rent and close 60 stores, saving £40 million on costs and £30 million on marketing, inventory shrinkage, delivery, and efficiency improvements. To boost sales, 80% of its products will be priced under £20. Executive chairman Alistair McGeorge says the turnaround plan is underway and operational improvements have been made to reconnect with customers.
Factuality Level: 8
Factuality Justification: The article provides accurate information about New Look’s financial results and the measures taken by the company to improve its situation. It includes relevant details about revenue, sales, cost savings, and the impact of the CVA. The quote from the executive chairman adds credibility to the report.
Noise Level: 3
Noise Justification: The article provides relevant information about New Look’s financial performance and its efforts to improve its situation through cost-cutting measures and strategic changes. It also includes quotes from the executive chairman, which adds credibility to the report. However, it lacks in-depth analysis or exploration of long-term trends or possibilities.
Financial Relevance: Yes
Financial Markets Impacted: New Look’s financial performance impacts its stock value and investor confidence
Financial Rating Justification: The article discusses the retailer’s financial results, cost savings, and turnaround plan, which directly affect the company’s financial stability and potentially impact investors and shareholders.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:
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