Combat style boosts sales at New Look

A bizarre mix of combat style and Seventies punk has pushed sales at the discount fashion retailer New Look up by 8.4 per cent compared with its previous year's trading.

Like-for-like sales, which exclude new store sales, were up 7.7 per cent for the 52 weeks ending 29 March. However, gross margins for the same period increased by only 1 per cent, and for the 26 weeks to 29 March 2003 were actually 0.4 per cent lower as shoppers waited for lower prices in the January sales.

The group finance director, Alastair Miller, said that sales were especially strong in two product lines, the utility combat look and a retro punk style. Mini-skirts also sold strongly, he said.

New Look said its cost reduction programme was progressing and the planned reduction of its cost-to-sales ratio, from 43 per cent to 40 per cent by financial year 2004-05, was ahead of schedule.

Richard Ratner, an analyst at Seymour Pierce, said the market was particularly impressed with the cost reductions. "Fashion, particularly young fashion, is a good area to be in at the moment. We are recommending a buy," he said.

The company, led by chief executive Stephen Sunnocks, said the results were in line with expectations. Shares in New Look closed down 15p yesterday at 338.5p.