New Look reports full-year loss
New Look has reported a statutory loss before tax of £87.8 million for the 52 weeks ending 25 March 2023, compared to a loss of £25.5 million in the previous year, citing a one-off impairment charge of £47.4 million.
However, total revenue increased to £844.7 million, from £839.6 million in 2022, driven by UK&ROI retail sales, and gross margin was 45.8% versus 43.1% in 2022, "due to considered price increases and a higher mix of full price sales in the current year".
Adjusted EBITDA increased by 67% for the full year, from £25.2 million to £42.2 million, in what the retailer describes as an "extremely pleasing result" given the external headwinds and uncertain trading conditions that retailers have had to endure over the past 12 months.
New Look also refinanced £50 million operating facilities and extended maturity by 12 months to June 2024, and slimmed down its store portfolio – ending the year with 414 stores serving customers across the UK and ROI, from 435 stores in the previous year.
Looking ahead to FY24, New Look expects the inflationary pressures to continue well into H2, but while it remains optimistic that economic conditions will improve, it "needs to plan on the basis that the uncertain trading environment will continue".
