New Look to invest £100m after rise in revenue, profit

Fashion retailer New Look posted an uptick in both sales and profits this week, in its first full year under the ownership of South African firm Brait.

The high-street chain also outlined a £100m investment plan, that will see it grow its mainland China presence and expand European operations into Germany.

Revenue for the full year grew 5.4% to £1.4bn, with a 3.4% increase in like-for-like sales at its UK stores.

E-commerce sales were up a significant 27.9%, and its relatively young 92-store China operation managed an 8.8% rise in like-for-like sales.

New Look’s pre-tax profits grew 16.8% to £59.1m.

“We want to expand into the German market,” chief executive Anders Kristiansen told the Press Association.

“We have one concession at the moment and we’ll open our first store in October - we ant 75 stores over the next five years.”

Parent company Brait, which bought New Look for £763.5m last May, has given its blessing to increase investment to £100m from £73m.

But Kristiansen did warn the market that the UK retail scene is more challenging than it has been for some time, with poor weather and the fear of Brexit impacting consumer’s willingness to open their wallets.

“I don’t know exactly how we’re being affected by the referendum, but it is creating nervousness and uncertainty.

“But it doesn’t worry me because that’s retail - that’s what he have to deal with,” he said, adding that New Look has “a solid foundation, a good strategy and a new owner committed to that strategy.”

Kristiansen said if the referendum returns a remain vote, then it will be business as usual, and it it is out, then it “will be a challenge, but we are well hedged”.