New Look’s most recent fiscal year, concluding in March, exhibited positive signs with total revenue increasing to £844.7 million, a rise from £839.6 million. This uptick was primarily driven by robust retail sales in the UK and the Republic of Ireland. The company also reported an improved gross margin, climbing to 45.8% from the previous 43.1%. Notably, this improvement resulted from strategic price adjustments and an increased share of full-priced sales.
Furthermore, adjusted EBITDA showed significant growth, surging to £42.2 million from £25.2 million. However, the statutory loss before tax widened to £87.8 million, primarily due to an impairment charge of nearly £48 million.
Retail sales in the UK and ROI experienced notable growth, rising by £26.1 million to reach £627.3 million. Conversely, e-commerce sales saw a decrease of £8.5 million, reaching £219 million, as shoppers returned to physical stores in core markets. Nonetheless, the company reported an increase in sales through third-party e-commerce partners, amounting to £48.4 million, a rise of £2.8 million. Challenges emerged in post-Brexit trading, causing a decline in sales with EU-based partners. However, New Look took proactive steps to re-enter the European market, establishing a hub in Germany and launching on a major EU marketplace in September of the preceding year.
Throughout the fiscal year, New Look’s performance exhibited variability influenced by a range of factors. Positive post-Covid-19 customer sentiment and favorable weather conditions during the first half of the year bolstered sales of seasonal items. However, an unexpected period of unseasonably high temperatures delayed the transition to autumn/winter collections, with notable disruptions during the period of national mourning leading up to the Queen’s funeral. As temperatures eventually dropped, sales improved, particularly for knitwear, coats, and boots. Despite concerns related to the cost-of-living crisis, New Look reported strong sales for holiday parties and festivities, expressing overall satisfaction with its performance during this crucial period.
New Look maintained its dominant position in women’s dresses and denim and secured the second spot in the overall market share for women’s wear within the 18 to 44 age range throughout the fiscal year. Looking ahead, CEO Helen Connolly anticipates that inflationary pressures will persist well into the second half of the current year. She remains cautiously optimistic about economic conditions improving but acknowledges the need to prepare for ongoing uncertainties in the market.
