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.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
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."
READ NEXT:
Lancashire estate agency collapses into liquidation owing six-figure sum
Landmark £65m building that will provide 'real economic benefits' completed
Recording studio used by chart topping artists back on the market
Jobs double at coding trainer used by On the Beach, Evri and Sky Bet as revenue spikes
