Sales rise at FatFace but EBITDA slides due to wet weather and weak pound
Lifestyle clothing brand FatFace has grown its full year sales by 7.4% to £220.7 million as it opened new UK and overseas stores and invested in a new distribution centre.
In the year to 28 May, online sales increased by 20.6% to account for over 18.1% of overall sales compared to 16.2% in the previous year.
Meanwhile, EBITDA declined to £33.5 million from £36.5 million previously.
Anthony Thompson, chief executive of FatFace, said: "This has been a year of investment and transition for the business as we opened new stores internationally and delivered key infrastructure projects to support future growth.
“Investment in the business combined with the dollar strengthening against the pound and the clothing sector trading through an unexpectedly warm and wet autumn 2015, adversely impacted our EBITDA. Nevertheless, we maintained our full price stance through the Christmas trading period and delivered sales growth in all channels across the 12 month period.”
FatFace launched 12 new UK stores in the period and commenced construction of a new 120,000 square foot distribution centre which is due open at Dunsbury Hill Farm in the company’s fourth quarter.
The company said its new US dedicated website is now live and three stores have been opened on the East Coast of the country.
Thompson added: "As a number of major investment projects are nearing completion we are now entering a new period of expansion for the company. We now have even greater physical and IT capacity to drive our multichannel and international ambitions and are primed for further growth in sales and EBITDA."
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