Fashion retailer New Look posted a deeper annual loss on Tuesday in its full year results.
Statutory loss before tax amounted to £522.2 million, deeper than the £190.2 million loss made the previous year.
New Look said that the deeper loss was primarily driven by a £423.3 million goodwill and brand impairment charge related to its restructuring.
The company, owned by Brait, revealed its restructuring plans in January, aiming to cut debt by £1 billion.
Revenue amounted to £1,239.0 million, down 3.8%, but remains in line with expectations given the focus on driving more profitable sales and fewer stores.
New Look said that it maintained its number two position for overall Womenswear market share in the 18 to 44 age range. It also outperformed the UK market for core women’s clothing in stores.
“Whilst New Look enters the new financial year in a fundamentally healthier and stronger position, in many respects today marks the starting line. We have more work to do to enhance trading and deliver further operational improvements as we continue our turnaround plans,” Executive Chairman Alistair McGeorge commented on the results.
“We expect the retail environment to remain as challenging as ever in the year ahead, with continued Brexit uncertainty and unseasonable weather impacting current trading,” the Chief Executive continued.
Indeed, Brexit is not the only factor to impact the performance of UK retailers, with several noting that the unseasonable weather patterns has impacted the sales of summer lines of clothing.
“We will continue to focus on what is in our control by further enhancing profitability through our fantastic product, building brand equity and grasping new market opportunities.”
New Look, along with several other UK fashion retailers, has been subject to difficult sector-wide trading conditions.
It recently announced the closure of 60 of its UK stores, endangering 1,000 jobs.
Almost 2,500 high street shops closed last year, according to PwC research complied by the Local Data Company. Banks and financial services lead the way with 291 net closures, closely followed by fashion retailers with 269 closures.