New Look not out of the woods yet
By Sarah Wood | 11th September 2019
Fashion retailer New Look saw like-for-like sales plunge in its first quarter, although it insists its business restructure will make a positive difference in the long-term.
2018 was a tough year for New Look, with stores including the Gloucester branch closing, and the company entering into a Company Voluntary Agreement (CVA). But it looks like it isn't out of the woods in 2019 either.
For the 13 week period ending 29th June, the retailer, which has stores in Cheltenham and Stroud, recorded a 10.1 per cent fall in core like-for-like sales compared with a year earlier, as reported by Retail Gazette. It blamed the fall in sales on unseasonably bad weather in May and June, along with continued consumer uncertainty.
But the company said there has already been an improvement in trading performance for the second quarter, with like-for-like sales up 2.2 per cent.
Refinancing earlier this year has seen long-term debt significantly reduced from £1.35 billion to £350 million and an addition of £150 million of new long-term capital. New Look said this has now secured its long-term future.
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