New Look turnaround sees £33m profit

New Look has reported an underlying operating profit of £33.2 million, compared to a loss of £35.7 million the year before.

The fashion retailer also reported a year-on-year improvement in profitability across key areas.

Executive chairman Alistair McGeorge explained that e-commerce and in-store channels are working together “better than ever” and a turnaround plan instituted last year is seeing benefits in terms of improved speed to market.

“We have exceeded our cost-saving plans, addressed our previously over-rented UK store estate, completed the review of our international businesses, and delivered further operational efficiencies across the business,” he said.

“We have successfully completed our financial restructuring, which has secured the company’s future and long-term profitability by materially deleveraging our balance sheet and providing us with the financial flexibility to better attack our future.”

McGeorge added that he expects the retail environment to remain as challenging as ever in the year ahead, with continued Brexit uncertainty and unseasonable weather impacting current trading.

In March, the retailer appointed Nigel Oddy as chief operating officer, as it pushed on with a Company Voluntary Agreement that resulted in store closures and job cuts.

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