New Look has successfully completed a £100m debt refinancing deal with Wells Fargo and Blazehill Capital, set to help the business during a tricky trading environment after posting a full-year loss before tax despite revenues rising.
Revenue rose from £839.6m in 2022 to £844.7m as the fashion retailer prioritised full-price sales while the business also recorded a 67% increase in adjusted EBITDA for the full year, from £25.2m to £42.2m.
But the business posted a statutory loss before tax of £87.8m for the period – up from a £25.5m loss in 2022, attributing it to a one-off impairment charge of £47.4m following “annual accounting assessment of all tangible and intangible assets”.
Speaking to Retail Week, chief executive Helen Connolly said leveraging its omnichannel operating model to respond to changing consumer spending patterns has been key since the company posted record online weekly sales for Cyber Monday last year.
“We have turned focus back on what the core business is about: cost and our strategic investments,” she told the title.
“We often reference omnichannel, as does everyone, but for New Look it has made a meaningful difference. We are really focused on those customers who shop in both channels; they are the ones who are most loyal and the most valuable to us.
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New Look also confirmed to Retail Week that the company voluntary arrangement it launched back in 2020 is “on track” to end next year.
Connolly said that as a result the retailer can now invest back into its stores and eye new additions to its store portfolio.
“We have closed a number of stores, but we are also investing in opening new ones to put our store portfolio in a strong position. We can now start investing back into some refurbishments and we are looking at new store opportunities,” she told the title.
New Look said it remains “cautious” as inflationary pressures continue to take their toll, but said it remains “confident” in the long-term appeal of the brand.
Connolly is also optimistic that 2023 Black Friday trading will be as successful as last year. “We had our best-ever sales last year during Black Friday weekend, so we’re hoping to replicate that again,” she said.
“We want to maintain a strong full-price position and, throughout the course of November, will look at what promotional activity is there for customers. We’re not going to do blanket promotions; they will be very targeted.”
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