New Look has reported an underlying operating loss of £74.3 million compared to last year’s profit of £97.6 million, which was also down from £174.7 million the previous year.

The fashion retailer’s UK sales fell 11.7 per cent on a like-for-like basis, with website sales down 19 per cent. New Look brand like-for-like sales were down 11.4 per cent, although third party e-commerce sales were up 15.5 per cent for the full year ending March 24.

The statement noted “significant progress” being made to deliver financial and operational stability that will be reflected during 2019 and beyond.

Prices are being lowered and aligned across store and online channels, while the supply chain has been “fundamentally realigned” with increased flexibility in buying model, faster trend reactions and improved speed to market.

A “cohesive multichannel model” is being implemented, with continued investment to improve the online customer journey.

Approval of a Company Voluntary Agreement in March this year helped to address New Look’s over-rented position of UK store estate, with an estimated £40 million of cost savings.

Executive chairman Alistair McGeorge said: “Last year was undoubtedly very difficult for New Look, with a well-documented combination of external and self-inflicted issues impacting our performance.

“Since November, we have focused on making the necessary changes to get the company back on track and reconnect with our customers,” he continued. “Our turnaround plan is now well underway, and we have already made substantial operational improvements to help stabilise the business, reduce our fixed cost base and put us in a better position to drive future full price sales.”

McGeorge added: “Trading conditions will remain tough in the year ahead, but further operational efficiencies and a resolute focus on our core strengths and heartland customer will help to ensure we remain on the right track.”

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