How New Look is responding to tough trading with continued omnichannel investment

In a year marked by economic uncertainty, volatile weather patterns and continued pressure on consumer spending, New Look said it remains focused on strengthening its omnichannel model and investing in initiatives designed to improve customer experience and long-term resilience.

The business believes its "strong" online market share, clean stock position and omnichannel model place it in a "solid position" to navigate ongoing economic uncertainty.

A programme of targeted efficiencies is underway to help offset rising cost pressures. As part of this, the brand is focusing on high-return initiatives and remains "relentlessly" customer-focused - whether in store, online or through its app - to deliver a "cohesive and engaging experience across every channel".

It comes as New Look expects trading conditions to remain volatile, driven by macro-economic trends such as continued pressure on consumers’ discretionary spending.

The brand's physical estate remains central to its strategy. By the end of FY25, 79% of stores had been upgraded with new technology and the brand said it continues to review its store footprint to reflect changing shopping behaviours and ensure "long-term viability".

On the digital front, the company continues to enhance the customer journey, having previously launched an upgraded website designed to improve speed, experience and ease of navigation.

Customer loyalty is another key focus area. Its loyalty programme, Club New Look, provides members with exclusive offers, fashion content, event access and more. The business sees this as a "key strategic pillar" for the years ahead and is working to scale the programme further across its app, website and in-store offering.

It comes as the company reports total revenue decreased to £687.7 million for the year to 29 March 2025.

UK retail sales fell by £50 million to £488.5 million, driven by a "challenging" trading environment caused by ongoing cost-of-living pressures, alongside multiple store closures during the year.

Unseasonable and unpredictable weather also impacted customer demand and the transition between key seasonal trends. In line with the wider market, the company described it as a year of discounting and promotions to maintain a clean stock position.

E-commerce sales decreased by £8.9 million to £208.5 million, reflecting similar challenges to UK retail as customer sentiment remained subdued. As outlined above, the business said it intends to ramp up digital operations, enhance the customer journey and drive future growth in the e-commerce segment.

Other results include:

• Gross margin of 48.1%, impacted by higher levels of discounting due to a challenging market and unseasonal weather.
• Adjusted EBITDA decreased to £18.5 million, following reduced sales and increased promotional activity.
• Statutory loss before tax of £77.2 million, driven by lower year-on-year sales, increased administrative expenses and higher finance expenses.

In a statement, New Look said: "FY25 was another challenging year for fashion retail as the pressure on disposable income has continued to intensify. The broader UK market has been impacted by persistent inflation, rising employee costs, and a difficult macroeconomic backdrop including global instability, freight disruption, and increasingly extreme weather conditions.

"Alongside this, footfall across the UK high street remains subdued, and business rates remain high - adding further pressure to already stretched operating margins. Consumer confidence dipped with younger customers - a key demographic for New Look - feeling the effects most acutely. As a result, discretionary spend has remained highly constrained across the year.

"Unseasonable and unpredictable weather patterns also created a number of commercial challenges. These shifts made it harder for customers to commit to seasonal wardrobes, and we, along with competitors, saw knock-on effects to core seasonal product categories.

"Despite the headwinds, we made strategic decisions to navigate the environment and continue investing for the future. In line with the broader market, we increased promotional activity to ensure a clean stock position and maintain cash flow discipline which also helped drive traffic and conversion, both in-store and online.

"We focused on data-led marketing to drive efficiency, shifting spend towards 'Pay Per Click' (PPC) at peak moments such as Black Friday while continuing to build brand saliency through investment in omnichannel marketing."

The business ended the year with 337 stores across the UK, with total retail space reduced to 2.7 million sq ft. During the period, one store was opened and 20 stores were closed as the company focused on profitable locations and maintaining an "appropriate" bricks-and-mortar presence to support the business.

The group also exited the Republic of Ireland, shutting all its 26 shops in the country, hitting 347 workers, in the face of squeezed consumer spending.

Looking ahead, while remaining "cautious" amid an "unpredictable trading environment", New Look said it is confident in the strength and appeal of the brand.

"We are optimistic about the future and remain committed to delivering value to our customers," it added.