New Look has successfully reduced its pre-tax losses, reflecting strategic adaptation amidst challenging market conditions.
- Sales fell by nearly 9% to £769.2m due to store closures and harsh trading environments.
- The pre-tax losses decreased significantly from £87.8m to £21.7m for the year ending 30 March.
- Retail revenues fell 11.5% while online sales remained stable at £217.5m.
- Investment in stock with broad appeal and trials on store renovations and AI tools are planned.
New Look has effectively lowered its pre-tax losses, showcasing resilience amidst ongoing challenging market conditions. The fashion retailer’s sales experienced a near 9% decline to £769.2 million, largely attributed to strategic store closures and a tough trading atmosphere.
In contrast to the fall in sales, New Look reported a significant reduction in pre-tax losses, from £87.8 million the previous year to £21.7 million for the year ending 30 March. This improvement indicates the company’s proactive measures to navigate economic pressures.
Retail revenue saw an 11.5% decrease, down to £555.1 million, driven by the physical store closures. Meanwhile, online sales held steady at £217.5 million, reflecting a shift in consumer purchasing behaviour amidst changing market dynamics. Furthermore, revenue from third-party platforms decreased by 7.6% to £44.7 million.
A key strategy for New Look was the procurement of ‘broad appeal stock with longevity’, aimed at safeguarding profit margins against unpredictable weather impacts during spring and summer.
Looking ahead, New Look is set to implement several trials over the coming year. These include store renovations and the integration of loyalty and data-driven AI tools. The goal is to identify which investments yield the most value and best support their omnichannel business model. Furthermore, the company is cautious about the economic environment, recognising inflationary pressures and regulatory costs like national wage increases as significant factors impacting their operations.
New Look’s strategic initiatives showcase a strong focus on adapting to market changes while aiming to grow their omnichannel presence.
