Brait Plc · JSE:BAT
Brait — New Look — Q1 FY2017 Earnings Presentation
22 slides from Brait's earnings presentation, August 2016
Slide 1: New Look Investor Presentation Q1 FY17
NEW LOOK INVESTOR PRESENTATION QIFY17 13 WEEKS TO 25 JUNE 2016
Slide 2: Key Headlines
NEW LOOK KEY HEADLINES ANDERS KRISTIANSEN
Slide 3: Key Headlines
KEY HEADLINES WE CONTINUE TO FOCUS ON CONSISTENTLY DELIVERING OUR STRATEGIC OBJECTIVES * It has been an undeniably tough quarter, but we are committed to executing our strategic objectives for the long term. * Q1FY17 Revenue declined by 4.2% (LFL sales -6.6%), as we navigated a more difficult enviro
Slide 4: Strategic Update
NEW LOOK STRATEGIC UPDATE ANDERS KRISTIANSEN
Slide 5: Our Strategic Initiatives
OUR STRATEGIC INITIATIVES PRODUCT DEVELOPMENT MENSWEAR GROSS PROFIT MARGIN RATE
Slide 6: Brand
BRAND BEING A TRUE BRAND IS KEY TO OUR FUTURE STRATEGY * Weare pleased to retain our No. 2 spot in the UK Womenswear market though we are disappointed to see a slight decline in our market share.” ¢ Weare reviewing and refreshing our approach to our windows, which are a key footfall driver. The new
Slide 7: Key Strategic International Markets: China
KEY STRATEGIC INTERNATIONAL MARKETS: CHINA CHINA REMAINS A KEY PRIORITY MARKET TO DRIVE GROWTH * China continues to deliver positive LFL sales, despite footfall being impacted by challenging market conditions. * Conversion to sales continues to improve as we increase brand awareness and refine the p
Slide 8: Key Strategic International Markets: RoW
KEY STRATEGIC INTERNATIONAL MARKETS: RoW FRANCE Despite the footfall challenges in the market, we have been pleased with the continuing improvement in performance in France. We also continue to refine the store estate in this market, relocating stores to better positions and seeking new sites. POLAN
Slide 9: Multichannel
9 MULTICHANNEL WE NEED TO ENSURE A SEAMLESS, CONSISTENT EXPERIENCE FOR OUR CUSTOMERS ACROSS ALL CHANNELS * Our store estate remains a core channel to market and an integral part of our multichannel offer. Customers browse, shop and return goods across channels and value a seamless experience: * 36%
Slide 10: Product Development
* KantarWorldPanel data 24 w/e 5 June 2016 (Womenswear by value). PRODUCT DEVELOPMENT WE SEEK TO DELIVER FASHION KNOW HOW, NEWNESS AND VALUE EVERY TIME * Going Out, Activewear and Petite continue to perform well. ¢ Weare ontrack to launch our extended Beauty range on bespoke illuminated fixturing in
Slide 11: Menswear
MENSWEAR A CONFIDENT AND CREDIBLE MENSWEAR OFFER IS KEY TO INCREASING AWARENESS AND MARKET SHARE Menswear sales continue to be driven by the improved product offering and the standalone stores. Menswear sales were +21% on last year. We were pleased to see our Mens UK market share continue to grow’.
Slide 12: Product Margin Rate
PRODUCT MARGIN RATE WE ARE AIMING TO DELIVER SIGNIFICANT, SUSTAINABLE IMPROVEMENTS IN OUR GROSS PROFIT MARGIN ¢ This will be achieved through: Better sourcing and product negotiation. A clear price architecture strategy. On-going reduction of Markdown. Review of product related costs. New tools and
Slide 13: Financial Review
NEW LOOK FINANCIAL REVIEW RICHARD COLLYER
Slide 14: Summary Consolidated Income Statement
14 SUMMARY CONSOLIDATED INCOME STATEMENT QlIFY17 Q1FY16 (13 weeks) (13 weeks) £m £m Revenue 354.2 369.8 Cost of sales (167.3) (168.2) Gross profit 186.9 201.6 Gross profit % 52.8% 54.5% Administrative expenses (SG&A) (159.8) (182.5) Operating profit 27.1 19.1 Operating profit % 7.7% 5.2% Operating p
Slide 15: Sales & Underlying Operating Profit
15 SALES & UNDERLYING OPERATING PROFIT Sales Growth by Segment * Q1FY17 vs. Q1 FYI6 Sales £10.0m 4 : * Our UK retail stores saw a decline in footfall resulting ina | New Look UK New Look International . - £5.0m | decrease in sales of £23.7m (-8.7%). | * Own Website sales growth was £4.1m (+9.0%), dr
Slide 16: Summary Consolidated Balance Sheet
16 SUMMARY CONSOLIDATED BALANCE SHEET As at As at 25 Jun 16 27 Jun 15 £m £m Derivatives 24.3 - Other non current assets 904.9 898.4 Non current assets 929.2 898.4 Inventory 170.8 165.2 Derivatives 27.4 7.2 Other current assets 87.9 76.5 Current assets (exc cash) 286.1 248.9 Cash 115.2 107.8 Trade pa
Slide 17: Summary Consolidated Cash Flow Statement
SUMMARY CONSOLIDATED CASH FLOW STATEMENT QIFY17 QIFYI6 (13 weeks) (13 weeks) £m £m Operating profit 27.1 19.1 Non cash items 12.2 16.1 Changes in working capital: Increase in inventories (23.1) (17.5) (Increase) / decrease in trade & other (1.4) 3.9 receivables Increase in trade and other payables 1
Slide 18: Capital Expenditure
CAPITAL EXPENDITURE WE CONTINUE TO TARGET INVESTMENT IN OUR STRATEGIC INITIATIVES AND SUPPORTING INFRASTRUCTURE We continue investing in our core UK market: 5 newstores (net 3), including 2 Mens standalone stores. Continued investment in IT infrastructure is driven by our ATLAS Retail Stock Manageme
Slide 19: Summary & Outlook
NEW LOOK SUMMARY & OUTLOOK ANDERS KRISTIANSEN
Slide 20: Summary & Outlook
20 SUMMARY & OUTLOOK * Weare committed to delivering our strategic objectives for the long term. * thas been a very difficult trading environment in the UK and Europe, with a number of factors influencing a decline in consumer spending. * Webelieve we create some of the best summer product ranges on
Slide 21: Q&A
NEW LOOK Q&A ANDERS KRISTIANSEN & RICHARD COLLYER
Slide 22: Slide 22