UK-based brand New Look has managed to narrow down its pre-tax loss amount despite the brand incurring a sales loss in the current financial year. New Look witnessed a drop of nearly 9 per cent in its sales due to the ongoing market conditions.
The brand incurred a pre-tax loss of nearly US $ 27.2 million for the financial year dated 30th march, 2024 which is significantly lower than previous year’s loss of nearly US $ 111.6 million. The fashion retailer had a drop of 8.9 per cent and quoted it as a result of “tough trading conditions”.
As per reports, the company had bought several “broad appeal stock with longevity” to safeguard its margins in response to unusual weather patterns experienced during the spring and summer.
The brand also reported that the revenue had dropped by 11.5 per cent to US $ 704 million due to store closures and the revenue from third party platforms also dipped by 7.6 per cent.
The brand said that while they do expect inflationary pressures to ease and economic conditions to improve, they are likely to encounter a high regulatory increase like ‘national living wage and national minimum wage which make up a large proportion of our cost base’.
The brand further added that they acknowledge the impending burden of their customer’s disposable income and therefore they will continue to invest in maintaining the brand’s key price points.
