High street fashion chain New Look is going through a transitional period, according to the company's executive chairman.
Alistair McGeorge said the business, which now has 1,051 stores in 15 countries, is working to ensure it remains consistent in bringing its customers quality goods and value for money.
His words followed the release of the firm's full-year results which showed a 0.2 per cent drop in total sales to 1.46bn in the 12 months to March 2011. Like-for-like sales were down by 5.5 per cent, while underlying operating profit fell by almost 40 per cent from GBP 162.7m in 2010 to GBP 98m.
Mr McGeorge said: "Clearly these are disappointing results, reflecting a business that was suffering significant internal disruption against the backdrop of a harsh and deteriorating consumer economy.
"Additionally, we allowed our price architecture to drift upwards, which undermined our competitiveness and relative value positioning in the marketplace."
A refurbishment programme has now been carried out at 331 of the company's stores, with new designs helping to refresh the look of outlets.
Mr McGeorge went on to say that New Look remains a strong brand and is confident that the right first steps have been put in place to return the business to sustainable growth.
