New Look has reported a reduction in annual pre-tax losses amidst declining revenue, attributed to challenging trading conditions.
- The fashion retailer’s pre-tax loss decreased to £21.7 million from £87.8 million the previous year, reflecting significant financial recovery.
- Total revenue dropped by 8.9%, with retail sales specifically seeing an 11.5% decline, pointing to economic pressures and store closures.
- Ecommerce sales remained stable, yet revenue from third-party platforms fell by 7.6%, impacting overall financial performance.
- Operating profit showed improvement, increasing by £75.1 million, demonstrating strategic effectiveness.
New Look has unveiled its financial performance for the year ended 30 March, revealing a marked decrease in pre-tax losses, now standing at £21.7 million compared to the prior year’s £87.8 million loss. The reduction in losses signifies substantial progress against a backdrop of revenue challenges. Total revenue saw a decline of 8.9%, decreasing by £75.5 million to £769.2 million, which underscores the impact of persistent store closures and unfavourable trading conditions owing to cost-of-living pressures.
Retail sales fell by 11.5%, amounting to £555.1 million. This downturn highlights the economic burdens faced by consumers, exacerbated by a strategic reduction in physical store presence. Despite these hurdles, ecommerce sales maintained stability at £217.5 million, suggesting a shift in consumer purchasing behaviour towards online platforms during adverse economic times.
Meanwhile, revenue from third-party platforms experienced a decrease of 7.6%, reaching £44.7 million. Such figures point to a broader downturn in cross-platform retailing challenges that have affected the company’s total revenue.
Throughout the year, New Look strategically opened five new stores while closing 35, concluding the period with 385 outlets within the UK and Ireland, compared to the previous year’s 414. This restructuring was part of a Company Voluntary Arrangement initiated in 2020 and concluded in September 2023, aimed at adjusting to market demands and optimising the store footprint.
Notably, operating profit soared by £75.1 million from a loss of £53.1 million to a positive £22 million, reinforcing the execution of strategic initiatives. The company remains “cautiously optimistic” about the future, with expectations that easing inflationary pressures, alongside continued investment in price competitiveness and technological advancements, will foster growth. Their focus on scanning customer spending power and trialling innovations in retail experience reflects an adaptive approach to evolving market conditions.
New Look’s financial trajectory shows careful navigation amidst economic adversity, pointing to stabilising prospects ahead.
