After The Withdrawal Of The Chinese Market, The British Street Brand New Look Still Lost 500 Million Pounds A Year.

New Look Retail Group Ltd., the UK's fast fashion retailer, reported a huge loss of over 500 million last year and showed a clear recovery signal.

As the impairment loss soared from 17 million 900 thousand to 423 million 300 thousand pounds, New Look Retail Group Ltd. recorded a pre tax loss of 522 million pounds in the 2019 fiscal year ended March 30th, an increase of 175% over the 190 million 190 million in fiscal year 2018.

In addition, other major performance indicators have been improved. The core of the year (UK and Ireland's local market) decreased by 11.6% from 2018 in fiscal year to 1.6%, while the conversion rate of comparable customers on physical and online lines increased by 3.5 percentage points and 5.5 percentage points respectively.

The core of the adjusted EBITDA benefits from the financial restructuring from 18 million pounds to 80 million 200 thousand pounds, the core of the basic operating profit also turn a profit, from 35 million 700 thousand pounds to 35 million 700 thousand pounds profit.

In the past year, New Look Retail Group Ltd. has withdrawn from overseas markets such as China, and closed more than 100 British stores in a year and a half, so its annual revenue fell by 3.8% to 1 billion 239 million pounds.

Management in the earnings report pointed out that women's dress and upper and lower clothing and other major categories of profitability increased, while shoes and accessories are still challenged, but unimpeded New Look brand in the British age of 18-34 women's clothing market has the highest share (as of the first 52 weeks of March 10, 2019 Kantar Worldpanel index of consumption data).

New Look Retail Group Ltd. successfully obtained the support of creditors such as store owners in March 2018, and closed the 60 local stores through "bankruptcy" in the UK bankruptcy procedure, thus avoiding bankruptcy management. Overseas business, as of the end of fiscal year 2019, more than 100 stores and Belgian franchised stores in China have all been closed, and the 19 and 30 stores that have applied for bankruptcy in Poland and France are left. The restructuring of stores has reduced the cost in fiscal year 2019 by 80 million.

Since the beginning of the new fiscal year, the restructuring has been dominated by management and finance. The group has hired the former CEO Nigel Oddy of House of Fraser, the UK Department store retailer, as the new chief operating officer, and joined four non-executive directors, and the brand founder Tom Singh will withdraw from the board at the end of June. The position of chief executive is still vacant.

Last month, the group completed the debt restructuring of debt restructuring transactions, long-term debt from 1 billion 350 million pounds to 350 million pounds, but the largest shareholder -- South Africa's richest Christo Wiese's investment company Brait SE (BATJ.J) Holdings fell from 90% to 18%-30%; New Look group's final parent company also changed to New Look RetailHoldings Ltd..

Group Executive Chairman Alistair McGeorge said in the earnings report that the completed restructuring plan has consolidated the foundation of the group. In the face of the unprecedented difficult retail environment formed by the uncertainty and abnormal weather, the group will continue to focus on controllable aspects at the 50th anniversary New Look brand establishment this year, and further improve its profitability by using brilliant products, brand value and new market opportunities.

New Look Retail Group Ltd.'s successful recovery experience from CVA is worth Topshop parent Arcadia Group Ltd. and fashion retailer Monsoon Monsoon stealing.

On the product, New Look Retail Group Ltd. reverses the fashionable route of the former CEO Anders Kristiansen, reducing the proportion of the fashionable products from 75% to 10%, and now 90% products conform to the public aesthetic and profile. Nigel Oddy points out that this change has greatly enhanced the ability of the group to withstand the weather changes.

On the other hand, Alistair McGeorge revealed that profit improvements largely benefited from the decision to cancel the free mail and encouraged customers to come to the store with free click picking and store returns.