New fashion

Performance indicators

2023: Loss - 5.4 billion rubles

In 2023, the revenue of New Fashion JSC amounted to 21 billion rubles, which is twice as much as a year earlier (9.7 billion rubles). In 2022, Zara CIS stores were closed for a significant part of the year. The net loss of "New Fashion" at the end of 2023 amounted to 5.4 billion rubles against 3.9 billion rubles of net profit recorded a year earlier. Such data are indicated in the financial statements (RAS), which was disclosed in April 2024.

According to RBC with reference to the materials of "New Fashion," in 2023 the company's costs increased sharply - from 13.8 billion rubles to 25.6 billion rubles. In particular, material costs increased from 6.9 billion to 12.1 billion rubles, commercial costs - from 6.9 billion to 11.2 billion rubles. The average number of employees by the end of 2023 reached 3.9 thousand people against 3.7 thousand a year earlier.

Unsplash

From the reporting it follows that "New Fashion" throughout Russia in 2023 operated 243 stores. Inditex had more than 500 points of sale before the imposition of sanctions against Russia.

In 2023, clothing sales from New Fashion reached 19.8 billion rubles against 5.4 billion rubles in 2022. Revenues from the sale of shoes doubled - from 585.2 million to 1 billion rubles.

The materials of "New Fashion" also say that in 2024-2025. the organization plans to receive enough profit from sales to cover the lack of working capital. The company intends to achieve this goal, including through access to new marketplaces.

The company also clarified that the launch of any new brands involves significant investments at the initial stages. At the same time, Novaya Mod emphasizes that the brands Maag, Ecru, Vilet and Dub have great potential and expect an increase in commercial indicators and an increase in market share. In October 2023, the company's plans to launch clothing production in Russia were announced.^[1]

Notes