New Look reports sales squeeze

The company said like-for-like sales at its 600 UK stores slumped by 7.1 per cent in the year to March, marking a drastic reversal from the five per cent rise in the previous year.

Operating profits fell to £98m from £162,7m a year earlier.

It has appointed former Matalan chief executive Alistair McGeorge as its new executive chairman, who is undertaking a strategic review of the business.

Its previous chief executive Carl McPhail stepped down in March and founder Tom Singh, who still owns 22.4 per cent stake in the company, took over while a permanent replacement was found.

Mr McGeorge said the results reflected the tough economic climate and “internal disruption” at the company.

New Look had allowed its prices to “drift upwards” which undermined its competitiveness and relative value positioning in the marketplace, he added.

He is guiding the company through a transition in order to ensure it delivers better-value products for shoppers.