FatFace celebrates ‘stellar’ year
FatFace celebrated a remarkable year marked by substantial increases in revenue and profit, particularly driven by its flourishing North American market.
Will Crumbie, the CEO of FatFace, described the year as “stellar.”
The Hampshire-based company reported sales of £282 million over the 12 months ending on May 27, a solid 15 percent rise compared to the prior year. Digital channels exceeded expectations with a year-on-year growth of 19 percent, now constituting 40 percent of the company’s overall business.
In the UK, like-for-like store sales rebounded by 15 percent, returning to pre-pandemic levels.
North America witnessed an even more remarkable surge, with sales up by 20 percent. This growth was attributed to a strategic focus on customer acquisition in the United States, a robust e-commerce expansion, and a successful launch in Canada.
Earlier in the year, FatFace ventured into the Canadian market with three physical stores and an online presence, announcing plans to increase their store count to eight.
Turning to financials, FatFace’s statutory profit after tax surged to £17.3 million, a significant increase from the previous £5.8 million. The underlying EBITDA, excluding adjustments for IFRS16, rose by 3 percent to reach £26 million.
Despite facing significant supply chain disruptions during the autumn and winter seasons, CEO Will Crumbie expressed his pride in the company’s performance. He reiterated FatFace’s commitment to a digital-first strategy, emphasizing their aim to provide high-quality, responsibly sourced clothing for families while delivering a seamless customer experience.
In recent trading, FatFace enjoyed a strong start to FY24, with a focus on full-price trading resulting in improved profit margins. The company also unveiled a partnership with British retail group N Brown and announced plans to open two new stores in the Republic of Ireland, marking their first expansion in that market since the onset of the pandemic.
Will Crumbie summed up the company’s achievements, saying, “I am delighted to report this stellar set of results, which demonstrate the strength of both the FatFace brand and our ability to execute against our objectives. In spite of the significant supply chain disruption experienced across the autumn and winter seasons, the team were able to navigate this successfully and maintain excellent customer service. My thanks go to all of my colleagues and partners for their support and dedication across the year.”
Throughout the year, FatFace expanded its customer base through collaborations such as Platform Plus with Next and an expanded product range online with UK retailers Marks & Spencer, as well as department stores Macy’s and Target in the US. Notably, FatFace achieved B Corp status in April and underwent an upgrade of its IT systems across the business, significantly enhancing stock management.
Looking ahead, FatFace has ambitious plans for the rest of the year. These include the expansion of its premium range, Copper & Black, for autumn/winter 2023, the opening of four additional stores in Canada, two new stores in the Republic of Ireland, and a promising partnership with N Brown, the parent company of brands like Simply Be, Jacamo, and JD Williams
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