New Look Struggles with Shrinking Sales Amid Ongoing Restructuring

New Look closes the fiscal year with losses, in the midst of a strategic review that could culminate in its sale in 2026. The British fashion retailer has reduced its sales by 6.5% to 687.7 million pounds ($921 million).

As advanced by Drapers on Tuesday, the British chain has also recorded operating losses of 47.6 million pounds ($64.2 million), at a time of restructuring that has led it to close its business in Ireland.

The British company appointed investment bank Rothschild mid-year to lead a strategic review of its business situation, putting a possible sale of the group next year on the table. Throughout the year, New Look has been progressively closing stores.

New Look has liquidated its business in Ireland this year, and is gradually closing stores

Last year’s losses contrast with the operating profit of 17.4 million pounds ($23.4 million) recorded a year earlier. Among the main causes are the losses incurred following the liquidation of New Look’s Irish business in February this year.

According to the British media, New Look has received during the period a cash injection of 30 million pounds to strengthen its business, which has allowed it to reduce its net debt from 112.7 million pounds ($152 million) to 69.8 million pounds ($94.2 million).

New Look closed its financial year with 337 stores in the UK, down from 356 in 2024. Despite the company’s situation, the group continues to be one of the UK’s largest womenswear retailers for the 18-44 age group.