Trying To Expand IPO New Look Through Overseas Expansion Is Swallowing Bitter Fruit.

According to the world clothing shoes and hats net, Britain's high street is trying to achieve its IPO plan through overseas expansion. brand New Look Group Ltd. is paying the price for its unrealistic plan.

The initial results released on Tuesday showed that the group should not expand its revenues. Instead, the group's revenue declined by 2.4% to 1 billion 454 million 700 thousand pounds in the 2017 fiscal year ended March 25, 2017. In fiscal year 2016, it was 1 billion 490 million 600 thousand pounds, of which the New Look brand was 6.6% lower than that of the sales. The British market was 6.8% lower than the sales, and the electricity business revenue continued to rise.

Sluggish sales and radical investment led New Look to slump 31.8% to 155 million pounds in fiscal year 2017 after adjustment in fiscal year 155 million, 227 million 200 thousand pounds in fiscal 2016, and 44.1% in continuing business profits, which fell from 174 million 700 thousand to 97 million 600 thousand pounds. Pre tax profit from the profit deficit was 16 million 600 thousand pounds, while the pre tax profit in 34 million 900 thousand fiscal year was 34 million 900 thousand pounds.

After China's fund expansion has swallowed up its consequences, New Look The latest store data also show that as a brand with no reputation in China, its rapid expansion capability is lacking. Its South African boss, Christo Wiese, claims that the crazy plan of 500 stores in China in the past three years is likely to be postponed or even stranded. In the 2017 fiscal year, the number of new New stores in China was only 25, which was only 38% of the 2016 expansion in the 2016 fiscal year. Instead of speeding up, it slowed down a lot.

Group chief executive Anders Kristiansen said in the earnings report that at present, the retail industry has become more competitive than ever before, and claims to have seen the trend of consumers' "buy and wear". Therefore, the group will make changes in compliance with the trend. It is trying to provide more convincing prices and reduce reliance on discount sales.

"Impure motives" for the expansion of New Look in China market, fashion No Agency, an industry research and consulting firm, has early warning. In 2016, the agency reported to its internal customers that the popularity of New Look in China is not enough to expand its annual 100 stores, and its expansion speed is higher than that already settled in China, and no matter whether the stores or reputation is higher than New Look, the world's major fast fashion group has no foundation at all.

At present, Gap Inc. (NYSE:GPS) Cape group, Inditex SA (ITX.MC) Indo Textile Group, Hennes & Mauritz AB (HMb.ST) Hayne Maurice group, Fast Fast (four) fast marketing group, the most popular development market in China is the Chinese market, but the expansion speed of these groups in the Chinese market is less than 100 stores / year.

In 2015, the South African private Holdings Company Brait SE (JSE:BAT) purchased New Look 90% stake after 780 million pounds, and the latter's IPO plan was postponed. South Africa's richest Christo Wiese's wishful thinking is through the expansion of New Look in order to win the biggest profit in 3-5 years of IPO, but the current retail market, the traditional retailers' valuation has not shrunk, has been able to "worship Buddha burn incense".

For the New Look expansion plan in China, Tang Xiaotang, founder of No Agency, has warned that this will be a "time bomb" for the group in the future. He said that in the mature brands of Europe and the United States, a few British brands know the most superficial about China. "When the British brand is doing the Chinese expansion plan, they even think that they can sell the products on Tmall, and they can charge the Alibaba the authorization fee."

In addition to providing advisory services to retailers operating in China, No Agency also acts as a pre consultant in overseas mergers and acquisitions of some Chinese companies.

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