New Balance’s UK division has reported a substantial decrease in losses for the 2021 fiscal year, largely due to the completion of its sponsorship deals with football clubs Liverpool FC and Celtic FC. The latest figures show that pre-tax losses have dropped from £11.9 million in 2020 to £5.9 million in 2021. Despite this decrease, the division has reported an increase in turnover, rising from £100.8 million to £116.3 million in 2021. The company has also experienced growth in sales in the rest of the world, with figures rising from £166.2 million to £297.2 million.

According to a statement from the board, the reduction in losses can primarily be attributed to the conclusion of the sponsorship contracts with Liverpool FC and Celtic FC. However, the company is still facing challenges, including increasing logistical costs and ongoing strategic investment in the UK, particularly in the running and football categories. The market continues to be sensitive to price increases caused by higher import costs and fluctuations in foreign currency. In response, New Balance is actively working to maintain margin levels while remaining competitive.

Like many other consumer and retail companies, New Balance has been grappling with the effects of inflation since early 2022. Rising production costs and operational pressures, combined with a decline in consumer sentiment, have created a challenging environment. However, despite these challenges, there is still a strong demand for the New Balance brand. The company recognizes the importance of inventory management in successfully navigating these uncertain times.

New Balance’s UK division is pleased with the progress made in reducing losses and increasing turnover. The conclusion of high-profile sponsorship deals has played a significant role in this improvement. The company remains committed to responding to market challenges and maintaining its competitive position. With a strong demand for its brand, New Balance is optimistic about its future. However, the company acknowledges the need for careful inventory management in the face of ongoing uncertainties.

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