New Look posts FY pre-tax loss, completes refinancing deal

High street fashion retailer New Look has completed a 100 million pound refinancing deal which it says it will use to boost its future growth plans.

The company reported a pre-tax loss for the year ended March 25 that widened to 87.8 million pounds from 25.5 million pounds the previous year.

This loss included an impairment charge of 47.4 million pounds following an annual accounting assessment of tangible and intangible assets.

On a brighter note, its adjusted EBITDA widened to 42.2 million pounds from 25.2 million pounds a year earlier.

Revenue also edged up slightly by 0.6 percent, reaching 844.7 million pounds from 839.6 million pounds the prior year.

The company said its focus on full-price sales helped improve its gross margin to 45.8 percent from 43.1 percent the prior year.

New Look CEO hails ‘strong year’

“Despite the challenges posed by inflationary headwinds during the period, and the ongoing cost of living pressures impacting consumer sentiment, it was a strong year for the business, driven by the appeal of our product, our pricing and our omnichannel offer,” said CEO Helen Connolly in a statement.

New Look also said Wednesday its Company Voluntary Arrangement (CVA) is on track to end in 2024, “providing portfolio stability and support to omnichannel investment”.

Connolly continued: “As we look ahead to the key trading period and countdown to Christmas, we remain confident in our strategy but mindful of the continuing external headwinds we and our customers face.

“We’ll continue to offer our customers great quality products however they want to shop, whether that be through our fantastic network of stores and teams across the country or through our market-leading digital channels.”