The mild autumn weather brings a chill to New Look as trade disappoints

FASHION retailer New Look warned that unseasonably mild autumn weather had hit trade so far in the run up to Christmas as shoppers held back from buying winter clothes.

The group said it was still optimistic over the all-important festive period despite the slow start, which has seen lower than usual sales of coats, jumpers and boots since the start of October.

But New Look was helped by the heatwave in July, as UK like-for-like sales rose 2.6 per cent in the half-year to September 28.

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The summer sales boost ensured New Look maintained its return to profit, with a surplus of £13.8m in the first half against pre-tax losses of £13.6m a year earlier.

It swung out of the red at the full-year stage in June as turnaround efforts and investment in online trading paid off.

Half-year results showed sales through its own website leapt 52.9 per cent higher, with wider e-commerce sales up an impressive 78.8 per cent, including trade through third parties such as online retailer ASOS.

Its recently introduced click and collect service now accounts for 25 per cent of e-commerce sales.

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But chief executive Anders Kristiansen, who took up the post in January, cautioned that current trading is “more challenging” due to the weather and pressure on cash-strapped consumers.

“We are not seeing any benefits of economic recovery feed through to our customers’ pockets,” he said.

The recent energy bill hikes are adding to the woes for shoppers, with a 3.9 per cent rise in tariffs from EDF Energy yesterday the latest blow on household finances.

Mr Kristiansen said: “The attention on utility bills and energy prices is unhelpful – it’s also unhelpful for us as a business.

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“We have 600 stores across the UK and consume a lot of energy.”

The group is keeping a tight control of costs as part of its turnaround plan, while also refurbishing nearly 200 stores under aims to revamp its remaining estate over the next three years.

It is also expanding internationally and plans to open its first stores in China by next spring, with six in the pipeline.

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