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LONDON, United Kingdom — New Look Retail Group Ltd. added to the gloom among Britain's clothing retailers, reporting a full-year loss and warning of challenging times ahead as online competition increases and shoppers seek instant gratification.
The pretax loss was £16.6 million ($21.5 million) for the year through March 25, the South African-controlled company said in a statement Tuesday. Sales fell 2.4 percent to £1.45 billion, while the New Look brand’s like-for-like revenue declined 6.6 percent.
New Look, which operates 872 stores selling fashion mainly for women and teenage girls, joins other UK apparel sellers such as Next Plc and Marks & Spencer Group Plc in the retail doldrums. The chain, majority owned by South Africa’s Brait SE, said shoppers are growing ever more trend-conscious and harder to please.
“The retail environment is now more competitive than ever,” CEO Anders Kristiansen said. “We have seen a growing shift in customer mindset during the year to a ‘buy now, wear now’ mentality, which challenges us to be even faster in identifying and responding to trends, buying with more conviction and becoming ever more agile.”
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In addition to online retailers like Amazon.com Inc., grocers such as Lidl and J Sainsbury Plc are bolstering their apparel offerings to take on the UK’s specialist chains. Lidl, the German discounter, said Tuesday it’s enlisted fashion model and designer Heidi Klum to develop a new clothing range.
New Look said sales rose 14 percent from its own websites and 31 percent from third-party online outlets. While about two-thirds of its stores are in the UK, it increased its presence in China to 110 stores.
The pretax loss compared with one of £34.9 million a year earlier, when figures were weighed down by one-time costs of £93.4 million related to the Brait takeover and a bond refinancing. Underlying operating profit fell 44 percent to £97.6 million.
By Eric Pfanner; editor: Paul Jarvis.
