New Look losses widen to £88m despite healthy revenues
The group’s gross margin also increased 2.7% in the year to 45.8% due to considered price increases and a higher mix of full price sales in the current year
New Look has suffered a statutory loss before tax of £87.8m in its full-year results, down from £25.5m in FY22, despite total revenues increasing to £844.7m in the period, up from £839.6m last year.
The group’s gross margin also increased 2.7% in the year to 45.8% due to considered price increases and a higher mix of full price sales in the current year.
Due to the group’s widening losses, it refinanced £50m in operating facilities and extended maturity by 12 months to June 2024.
That said, the fashion retailer attributed its increased revenues to UK and ROI retail sales, as well as to its ability to maintain the second spot for overall womenswear market share in the 18 to 44 age range.
New Look also stated that it maintains the number one market share position in women’s dresses and denim due to its strength of product offer.
Meanwhile, its adjusted EBITDA increase to £42.2m from £25.2m in 2022 demonstrates underlying improvement in profitability.
The retailer ended the year with 414 stores, down from a total of 435 stores in 2022.
However, it maintained that there are over 8.6 million known customers who shop online, in-store or via its app. During the year, its online marketplace, which serves customers in 56 countries, saw 235 million site visits – an increase from 230 million in the previous year.
According to New Look, the strength of its omnichannel operating model ensured it was “well-placed to respond to changing consumer spending patterns”.
Looking ahead to the golden quarter and 2024, the retailer said it will continue to focus on affordable fashion and that it has “the right proposition for the current economic environment”.
