Home / Knowledge / News / Apparel/Garments / Fashion retailer New Look clocks 2% dip in FY'11 sales
Fashion retailer New Look clocks 2% dip in FY'11 sales
27
Jun '12
Refinancing

New Look has taken steps to improve the financial position of the Group, having agreed amendments to borrowings and an extension of all maturities on senior debt out to April 2015.  This agreement received 100 per cent consent from New Look’s syndicate of lenders. Improving our financial position by extending the medium term maturities will allow the company to focus on its strategic objectives and growth initiatives.

The extension will also allow management greater time to evaluate options for the PIK tranche. The Company will also prepay a portion of the senior, second lien and mezzanine debt. At year end, total net debt was in line with last year at £1.1bn.

Preliminary Results Financial Headlines

  • Group Sales:  £1.5bn (-2%)
  • Group like-for-like sales (ex VAT): -5.9%
  • UK like-for-like sales (ex VAT): -5.7%
  • Full Year EBITDA** £147m: (2010/11: £191m)
  • H1 EBITDA £69m (2010/11: £120m)
  • H2 EBITDA £78m (2010/11: £71m)
  • Cash: £212m (2010/11: £191.4m)

Operational and Development Overview

New Look has made good progress through the year against the backdrop of a difficult economic environment that has hit consumer confidence and footfall on the high street.

The Group has maintained its No.2 position in the UK womenswear clothing and accessories value market and the improved performance in the second half of the year shows the impact of the actions taken under the leadership of Alistair McGeorge, who joined the Group as Executive Chairman in May 2011.

A rigorous focus on costs and working capital contributed to an improved cash position at year end of £212.3m (£191.4m).

We made considerable progress in our strategy of improving ranging, pricing and quality and broadening our appeal across our customer base. We continued to keep tight control of inventory and worked to improve lead times to give us greater flexibility to buy into the key seasonal trends. Looking forward, this focus will allow us to reduce our markdown and improve gross margin.

We have also been addressing more fundamental, structural issues which have impacted the whole of the retail sector and mean we have to ensure we deliver across whichever channel is most convenient to our customers.

We are, therefore, improving our multi-channel offer with initiatives such as “click and collect” and in-store online ordering. Our online business has performed strongly, winning market share in an increasingly competitive online market.  At the same time, we are working on our store portfolio and have concluded that the growth of online shopping is likely to result in 50-100 fewer stores than we have today.

However, stores will remain a vital part of our multi-channel offer and we have trialled a new store concept during the year to improve the customer shopping experience.  Following some very encouraging results we are now planning to launch a roll out across our store estate with an initial 120 stores to be refurbished in the coming financial year.


Must ReadView All

US announces final CVD on fine denier PSF from China, India

Textiles | On 19th Jan 2018

US announces final CVD on fine denier PSF from China, India

The US secretary of commerce Wilbur Ross recently announced the...

EU consumers to gain from cheaper, safer, better e-payments

Apparel/Garments | On 19th Jan 2018

EU consumers to gain from cheaper, safer, better e-payments

European consumers can now reap the full benefits of paying online...

Courtesy: Epson

Textiles | On 19th Jan 2018

Epson's new SC F2100 enhances DTG printing

Epson, a leader in inkjet printers and digital textile printing...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search