New Look, the privately owned fashion chain, is to step up its international expansion plans and refit stores in the UK after Christmas trading produced reduced like-for-like sales but stronger profits.

Like-for-like sales fell by 3.4 per cent in the 15 weeks to January, while total sales – helped by new stores – increased by 9.7 per cent. Gross margin improved by 4 percentage points after New Look anticipated a slowdown and bought conservatively to avoid the need for heavy discounting.