New Look has reported an underlying operating loss of £74.3m in its latest financial results for the year to 24 March 2018.
The embattled retailer had previously reported a 7.3% drop in revenue to £1.35bn for the year to 24 March 2018. In addition, the retailer decreased its UK like-for-like sales (11.7%) and own website sales (19.2%).
New Look’s third-party e-commerce sales saw an increase of 15.5%.
It also reported an adjusted EBITDA loss of £10.7m for the period, including £34.2m in one-off costs including stock clearance.
However, with the company voluntary agreement (CVA) approved in March, which saw the company’s rent lowered and the proposed closure of 60 stores, New Look has said that its liquidity has improved. The fashion retailer saved £40m in cost savings and £30m on marketing, inventory shrinkage, delivery and efficiency.
The retailer also revealed plans to slash its prices to offer significantly better value, with 80% of its products to be priced under £20.
The fashion company has marked these results as a “significant progress to deliver financial and operational stability”.
New Look’s executive chairman, Alistair McGeorge, said: “Last year was undoubtedly very difficult for New Look, with a well-documented combination of external and self-inflicted issues impacting our performance. Since November, we have focused on making the necessary changes to get the company back on track and reconnect with our customers.
“Our turnaround plan is now well underway, and we have already made substantial operational improvements to help stabilise the business, reduce our fixed cost base and put us in a better position to drive future full price sales.”