Fashion Retailer’s Turnaround Efforts Show Progress
- New Look reports profit rise
- EBITDA up 1.5% to £27.6m
- Underlying operating profit up 19% at £14.4m
- Revenue fell by 2.7% to £329.4m
- Branded like-for-like sales dropped by 4%
- Click and collect sales mix increased to 40%
- Plans to shut up to 60 stores and reduce rents by 60% through CVA
- Improved sales performance in product review
- Confident in the positive impact of changes being made
New Look, a fashion retailer, has reported stabilized profits with an increase in EBITDA by 1.5% to £27.6m and underlying operating profit up 19% at £14.4m for the 13 weeks ending June 2018. Despite a 2.7% revenue drop to £329.4m and a 4% decrease in branded like-for-like sales, the company’s multichannel model has shown improvement in both in-store and e-commerce customer conversion rates. The retailer plans to close up to 60 stores through a CVA agreement and reduce rents by 60%. Executive Chairman Alistair McGeorge expressed confidence in the brand’s resilience and the positive impact of ongoing changes.
Factuality Level: 8
Factuality Justification: The article provides accurate information about New Look’s financial performance, cost savings, and its multichannel model without any significant issues with digressions, misleading information, or bias.
Noise Level: 7
Noise Justification: The article provides relevant information about New Look’s financial performance and its cost-saving measures, but it lacks in-depth analysis or exploration of long-term trends or consequences of decisions on those who bear the risks. It also does not offer significant actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: New Look’s financial performance impacts its stock prices and investor sentiment.
Financial Rating Justification: The article discusses New Look’s stabilized profits, cost savings, revenue decline, and plans to close stores through a CVA. This information is relevant to investors and can impact the company’s stock prices and overall financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.
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