Retail Gazette reported earlier this month that New Look is preparing for the stock exchange, with the company’s CEO Ander Kristiansen declaring the company is “ready to float”. It seems the fashion business has moved a step closer to entering this stage.
Reports indicate that JP Morgan will be taking on the task, alongside investment banking firm Goldman Sachs. Both companies are hoping to push the fashion retailer to the stock market, which could then estimate the company at £2bn. The move comes after a pinnacle start to the week for the FTSE, whereby the FTSE 100 rose to 6,943.61 on Monday, higher than a recording breaking 6,930.2 last week. Though Monday ended 3.04 points down, February is seeing the highest results on the stock market since December 1999, suggesting New Look’s move has come at an opportune time.
While New Look’s sales suffered last year, other high street fashion retailers thrived such as Topshop. The brand, owned by Arcadia, expanded its stores in the US, through its partnership with Nordstrom. In the US, Topshop is now trading out of 52 Topshop concessions, with further plans for Houston and Atlanta in spring 2015 and Amsterdam opening a store February 26.
Competitor Primark also had a successful 2014, opening five stores in France. The giant’s sales are also expected to be up 16% on last year. With such heavy competition, New Look’s return to the stock market seeks to push the company’s financial profit and global expansion further – its success will undoubtedly impact its competitor high street stores.