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Birmingham Post
Birmingham Post
Business
Jon Robinson

End of Liverpool and Celtic deals help slash losses at New Balance

The end of New Balance's sponsorship deals with Liverpool FC and Celtic helped slash losses at the retail giant's UK arm by more than half during 2021, it has been revealed.

The division, which is headquartered in Birchwood, Cheshire, has reported pre-tax losses of £5.9m for the year, compared to £11.9m in 2020.

However its turnover surged from £267.1m to £413.5m over the same period.

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New Balance was replaced as Liverpool FC's kit maker by Nike in 2020.

The company's US parent is headquartered in Boston, Massachusetts, and can trace its roots back to 1906.

New Balance's UK turnover increased from £100.8m to £116.3m in 2021 while its sales in the rest of the world rose from £166.2m to £297.2m.

A statement signed off by the board said: "The reduction in year-on-year loss is largely attributable to the completion of the Liverpool Football Club and Celtic Football Club sponsorships contracts, which concluded part way through 2020.

"The generated loss was driven by increasing logistical costs that impact all industries, in addition to our continual strategic investment in the UK, particularly in both the running and football categories."

It added: "The market remains sensitive to price increases borne out of increased import costs and forecast and foreign currency exposure.

"We continue to respond to such increases responsible to maintain margin levels, whilst remaining competitive.

"Inflation has been the dark clouds hanging over consumer and retail companies since early 2022.

"Increasing uncertainties arise as a result of higher production costs as well as operational cost pressures, in addition to the generally declining consumer sentiment.

"Demand for the New Balance brand remains high, and inventory management will be crucial to weather the storm."

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