Strong online growth for New Look

Strong online growth for New Look

An unusually warm October and November have pushed British fashion retailer New Look's turnover down, but its (online) holiday sales were a big hit and CEO Kristiansen believes his group is ready for an IPO.

Slightly lower turnover, profit up 28 %

New Look's turnover dropped 1.6 % in its third quarter, down to 400 million pounds (540 million euro), but its like-for-like sales drop was "merely" 1.7 % as New Look pulled out of Russia and Ukraine in November because of the unstable political situation. It has also sold off its ailing French subsidiary Mim.

 

"Despite the unusually warm weather in October and November, our third quarter market share still grew", CEO Anders Kristiansen said. The growth was mainly achieved online, up 32 % during the holiday season. Meanwhile, despite slightly lower sales, its profit went up considerably because of full sales "despite heavy promotional spending". The EBITDA was up 28 % to 35.2 million pounds, nearly 47.5 million euro.

 

"Ready for IPO"

New Look is still preparing its expansion as it wants twenty Chinese stores by the end of the year, adding another four over the past quarter, and another fifty by the end of next year. Its French, German and Polish expansions are also going according to plan.

 

CEO Anders Kristiansen concludes New Look is "ready for an IPO", although he added the current stock exchange climate is not ready for it. "Maybe later, but these things are difficult to predict." At this moment, investment funds Apax and Permira control New Look, having bought the company 11 years ago. A previous IPO, near the end of 2010, was cancelled at the last minute. 

Questions or comments? Please feel free to contact the editors


Macron wants World Heritage recognition for French baguette

15/01/2018

French president Macron and the union of French bakers want to get the French baguette listed as Unesco World Heritage. If it succeeds, it will follow in the footsteps of Belgian beer and pizza from Napoli.

Lactalis recalls 12 million packs of baby milk

15/01/2018

Dairy manufacturer Lactalis is in the eye of the storm in France, because its baby milk has been contaminated with salmonella. It had to recall 12 million packs across 83 countries.

Larger packaging does not always equal lower prices

15/01/2018

Many supermarket items in large packaging are cheaper by the kilo or the liter than small packages, but in some cases, the reverse is true. Much depends on the standard packaging.

Delhaize reshuffles board

15/01/2018

Delhaize just announced it will rearrange its board of directors. New CEO Xavier Piesvaux assembled his team, which contains several familiar names and several newcomers as well. 

“Ferrero close to Nestlé's American chocolate division"

11/01/2018

Italian Ferrero and Swiss Nestlé are close to a deal for the former to acquire the latter’s American chocolate division. Nutella and Tictac’s manufacturer would be willing to pay 2.8 billion dollars to get brands like Butterfinger and Baby Ruth.

This self-driving convenience store brings fresh food to your door step

11/01/2018

A convenience store that drives around the neighbourhood by itself with a supply of fresh food: according to American startup Robomart, that is the convenience store’s future. It recently revealed a prototype in Las Vegas.

Back to top