Mixed fortunes for New Look

From the Echo, first published Thursday 2nd Oct 2003.

FASHION retailer New Look today revealed mixed trading fortunes in its half-yearly results out today

The Weymouth-based company's total UK sales for the 26 weeks to September 27 increased by 3.6 per cent compared to the same period last year.

But this figure was buoyed by an expansion in retail space during the year.

The company's like-for-like sales - which compare figures from stores in the past 12 months - fell by 3.6 per cent.

Gross margins for the same period were up by 0.9 per cent.

The company said it suffered during the summer by sticking to a full price selling policy, resulting in lower volumes but higher profit margins.

It added that sales of its new autumn ranges had been positive with like-for-like sales for the five weeks to September 27 up by 1.4 per cent on last year.

Stephen Sunnucks, chief executive, said: "The difficulties of the summer are now behind us and we are encouraged by recent trading. We continue to be focused on delivering profitable growth."

The company said it expects to open 200,000 square feet of new space in the UK during the next six months, 25,000 sq ft ahead of plan. There are currently nearly 500 stores operating in the UK.

Mr Sunnucks and his team are still considering a takeover proposal from Tom Singh, the company's founder and largest shareholder.

Mr Singh made an offer worth around £662 million in August.

Shares in New Look closed yesterday at 315.5 pence, valuing the company at £633 million.

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