New Look, a fashion retailer, reports a reduced pre-tax loss amidst challenging trading conditions.
- The company’s total revenue dropped significantly, influenced by cost-of-living pressures and store closures.
- Retail sales witnessed a noticeable decline while e-commerce sales remained stable.
- Operating profits experienced a significant improvement, turning into a positive figure.
- The retailer plans strategic investments to drive future growth in a competitive market.
New Look has announced a pre-tax loss of £21.7 million for the year ending March 30, compared to the previous year’s loss of £87.8 million. This improvement comes despite a challenging trading environment marked by store closures and tough conditions. The company’s total revenue decreased by 8.9% year-on-year, falling by £75.5 million to £769.2 million during the 53-week period.
The decline in retail sales, which fell 11.5% to £555.1 million, was attributed to ongoing cost-of-living pressures and the impact of closing stores throughout the year. Despite these challenges, New Look reported maintaining its margins by acquiring a higher proportion of ‘broad appeal stock with longevity,’ responding to unseasonable weather patterns.
E-commerce sales remained unchanged at £217.5 million, while revenue from third-party platforms decreased by 7.6%, totaling £44.7 million. This stability in online sales highlights the growing importance of digital channels amid fluctuating retail performance.
In terms of physical store operations, New Look opened five new stores in the UK but closed 35, concluding the year with 385 stores across the UK and Ireland. This reduction in total store count from 414 the previous year was predominantly due to a Company Voluntary Arrangement (CVA), initiated in 2020 and completed by September 2023.
Operating profit showed a remarkable turnaround, increasing by £75.1 million to a profit of £22 million, from a £53.1 million loss previously. This financial rebound indicates improvements in operational efficiency and cost management.
Looking ahead, New Look expressed cautious optimism for the fiscal year 2025. The company acknowledges the potential easing of inflationary pressures and economic improvement but remains mindful of regulatory cost increases, such as the national living wage. By investing in trials like store renovations and AI tools, New Look aims to identify valuable avenues for supporting its omnichannel model.
New Look continues to navigate economic challenges while seeking growth opportunities through strategic investments.
