New Look’s losses have lessened despite sales dip in full year

New Look reported a decline in revenue year on year for the 53 weeks to March 30, 2024, from £816.9m to £735.4m as store closures and “tough trading conditions” took a toll.

Sales in the UK also dropped from £609.1m in 2023 to £538.5m as the “challenging trading environment” and “unseasonable weather patterns” also hit its home market.

New Look hailed its online sales for the year, which “remained strong” at £217.46m compared to last year’s figure of £218.98m, as its online market continued to outperform store sales.

Adjusted EBITDA for the year also dropped from £50.5m to £46.7m, while the retailer posted a statutory loss before tax of £3.65m, narrowing from £10.85m in 2023.

New Look said it retained its position as the market leader in both dresses and going-out categories across womenswear and hailed having the “right proposition” for customers seeking affordable fashion.

The brand also noted its store total for the year stood at 356, as it opened five stores during the year while also closing 35 following the completion of its company voluntary arrangement (CVA).

A source close to New Look also said the fashion retailer grew its margin by keeping control on stock levels and reducing promotional activity during the year.

The source added that these elements have all helped to provide increased financial stability for New Look and to right-size its store estate for future growth.

In terms of outlook, New Look said its omnichannel business model continues to give the fashion retailer a “competitive edge” in an increasingly competitive market.

The fashion retailer also said it is “well positioned” to reap the rewards of an improvement in the external economic market and said it is optimistic about the future of the brand.

The fashion retailer said in a statement: “Whilst we expect inflationary pressures to ease with an improvement to economic conditions, we are subject to high regulatory increases such as national living wage and national minimum wage which make up a large proportion of our cost base.

“We will be investing in several trials across the next year such as store renovations, loyalty, data, and AI tools to ascertain which investments return the most value and support our omnichannel model.

“We will continue to think customer first and focus on providing a cohesive, personalised shopping journey.”