The Sales And Profits Of New Look2017 In The First Half Of Fiscal Year Were Significantly Reversed.

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New Look Group Ltd., a retailer, complained that its "challenging" market environment led to a sharp setback in its sales and profits in the first half of fiscal 2017.

In the first 26 weeks ended September 24th, New Look Group Ltd. fell 8.8% in comparable sales in the UK market, a further expansion from 7% in the first quarter, indicating a deterioration in the two quarter.

The group's mid term comparable sales decline increased from 6.6% in the first quarter to 8.4%, which means that the overseas market has also regressed.

New Look Group Ltd. CEO Kristiansen Kristiansen said in the earnings report that the group was mainly affected by external factors such as the weakening of consumer confidence.

The data show that Marks & Spencer Group PLC (MKS.L), Marsha, and Next PLC (NXT.L) respectively recorded 5.9% comparable sales declines in the first half and the three quarter, respectively, the first and second largest in Britain.

Retailers, the average age of customers is relatively high, while New Look Group Ltd., according to Kantar Worldpanel, released the first 24 weeks of September 25, 2016 as the first largest women's clothing retailer under 35 years old.

Anders Kristiansen's positive performance mentioned in the earnings report includes stable gross margins and good growth in both online and international markets.

In the first half of the year, sales of group self operated websites increased by 9.5% year on year, while third party e-commerce sales achieved a 21.5% increase, New Look

China has entered the two platforms of Tmall and Jingdong.

New Look Group Ltd. did not disclose sales figures in the international market, saying China, France, Poland and Germany were the top priority countries, and pointed out the milestone of the 100 stores in China.

In the first quarter of August, the group said that the number of stores in China will increase to 135 before the end of fiscal year 2017 (end March 2017), a net increase of 50 compared with the end of March 2016.

It is understood that the group's South African controlling shareholder, Brait SE (JSE:BAT) boss Christo Wiese, has a more aggressive expansion plan, and promises to increase the number of New Look stores in the Chinese market to 500 in the next three years.

In the first quarter of June 25th, the brand has already opened 94 stores. If it expands to 500 in 3 years, its expansion speed will exceed that of Uniqlo, which is more than 100 new stores in China every year.

In recent years, New Look Group Ltd. has been most highly reliant on high-speed expansion and expansion in China. It is CEO Anders Kristiansen, who served in the Group group, which owns Jack, Jones, Jones, JACK&JONES, Only and Vero, and then served as deputy chief executive officer of the Chinese market.

But obviously, China's retail environment, economic environment and the way of life of Chinese consumers are quite different from those of Anders Kristiansen in China.

As for the category expansion of New Look Group Ltd., Anders Kristiansen said consumers have responded positively to men's wear stores, and now there are 15 such independent stores.

In addition, the brand will also launch a beauty series, which is "excited" by the potential of Anders Kristiansen.

It is true that the independent beauty series launched by the fast fashion giant H&M last year has established reputation and sales with good quality and cost-effective. And the color cosmetics products are benefiting from the spread of social media. The New Look Group Ltd. is also expanding its ambitions.

In the first half of fiscal year, New Look Group Ltd. achieved a revenue of 718 million 100 thousand, a decrease of 5% compared with 756 million US dollars in the same period last year.

Adjusted EBITDA profit tax profit before depreciation and amortization fell 28.6% to 86 million 900 thousand pounds, and operating profits plunged 37.4% to 59 million 300 thousand pounds.