New Look rules out plans to float
NEW LOOK chief executive Anders Kristianson has said the group is in no hurry to join the latest flurry of stock market listings, after the fashion retailer reported a five per cent jump in third quarter sales.
Kristianson said the company “did not have any imminent plans” and needed to strengthen its position overseas and online first before considering a return to market.
“It is about delivering a solid business and doing just that takes time. We want to demonstrate that we have got an international business and we want to get started in China, in Russia, take over our Polish business and get into Germany with our own website,” Kristianson said.
New Look is opening its first standalone stores in China in March and plans to have up to 20 by spring of next year. In Russia, where it has 19 stores, the group is in talks with a new franchise partner to open more stores while in Poland, where it has 10 shops, it is close to buying out its franchise partner.
Kristianson also laid out his plans to double New Look’s menswear business from four to eight per cent of total sales in the coming years.
He said other retailers had a much stronger menswear mix of 30 per cent and that New Look was “not taking our share of the pie”.
His comments came as the company reported a tough third quarter, blaming the warm autumn weather and the fierce discounting across the high street.
Like-for-like sales edged up 0.5 per cent in the three months to 28 December while core earnings were flat at £83.3m. Total revenues rose to £452.1m, driven by a 50.3 per cent jump in online sales.