Alistair McGeorge returns to New Look as profits fall
New Look has posted a £10.4m underlying operating loss in the first half of its financial year and has announced that former chairman Alistair McGeorge has returned to the business in the role of executive chairman.
In the 26-week period ending 23 September the young fashion retailer achieved revenue of £686m, down -4.5% year on year while like-for-like New Look brand sales were down -8.6%. UK like-for-like sales were down -8.4% while own brand online sales were down -7.6%. The only bright spot was third party ecommerce sales which were up 17%.
Adjusted EBITDA was down from £86.9m in the same period last year to £24.2m, while the underlying operating loss of £10.4m compared to an underlying profit of £59.3m last year.
McGeorge previously led New Look, which is now majority owned by South African investor Brait, through a period of recovery in 2011. A former CEO of Matalan, he had been executive chairman at New Look from May 2011 to September 2013 then becoming non-executive chairman until 2014 when he left the business.
As a result of his arrival Danny Barrasso, formerly Interim CEO, has returned to his previous role of UK & Ireland managing director. Barrasso had been holding the fort at New Look following the departure of former CEO Anders Kristiansen in September.
McGeorge said his immediate focus "in this period of transition will be to deliver stability and get the business back to basics". "Today's results reflect another tough period of trading for the company amid a challenging retail environment on the UK high street. Whilst we're not anticipating a reversal in fortunes overnight, I am confident we will implement the necessary changes to get the company back on track," he said.
"We will focus on ensuring that we buy into the right trends with the right product, have an efficient supply chain, and provide customers with great value. New Look is a remarkable brand supported by brilliant people, and we will focus on getting back to basics and rebuilding our position within the UK womenswear market," he added.
