Despite a drop in sales, New Look manages to narrow its pre-tax losses amidst challenging market conditions.
- Pre-tax losses decreased from £87.8 million to £21.7 million over the year ending 30 March.
- Sales fell by 8.9% to £769.2 million, attributed to store closures and tough trading conditions.
- Efforts to focus on stock with broad appeal helped maintain margins through unpredictable weather.
- Future investments include trials in store renovations, loyalty programmes, and AI tools to propel growth.
Despite a decrease in sales, New Look has managed to reduce its pre-tax losses significantly. The fashion retailer reported a pre-tax loss of £21.7 million for the year ending 30 March, a substantial improvement from the previous year’s loss of £87.8 million. This financial progress has been achieved even as sales declined by 8.9% to £769.2 million, primarily due to store closures and challenging market conditions.
The company’s revenue experienced significant reductions across various channels. Retail revenue dropped 11.5% to £555.1 million due to store closures, while online sales remained stable at £217.5 million. Moreover, revenue from third-party platforms also saw a decrease of 7.6% to £44.7 million. These declines are indicative of the broader challenges faced by the retail sector.
New Look strategically purchased stock with broad appeal and longevity to safeguard its profit margins, especially in light of unpredictable weather during the spring and summer months. This approach reflects a forward-thinking strategy in inventory management, demonstrating adaptability to external pressures.
Looking forward, New Look acknowledges ongoing economic pressures and regulatory costs, including increases in the national living and minimum wages. The retailer emphasises the need to stay attuned to customer financial pressures while maintaining competitive pricing to drive volume growth within its omnichannel model.
In an effort to enhance future performance and customer engagement, New Look plans to invest in various trials over the coming year. These include store renovations, loyalty programmes, and the utilisation of data and AI tools. These initiatives aim to determine which investments yield the best value and support the brand’s omnichannel strategy.
New Look demonstrates resilience by narrowing its losses amidst a challenging economic landscape.
