01 November 2017
FULL PRICE TRADING AND INFRASTRUCTURE INVESTMENT DRIVE MOMENTUM AT FATFACE AUDITED FINANCIAL RESULTS FOR THE 53 WEEKS TO 3 JUNE 2017
FatFace, the UK lifestyle clothing brand, today announces its financial results for the 53 weeks to 3 June 2017. Sales increased as the company invested in space expansion and a new 80,000 sq ft distribution centre, now fully operational. 10 new stores were opened including three in the US where the business is trading well. In addition, the first US department store partnership with Von Maur was signed and is trading.
Full year highlights:
- Total sales increased to £226.1m (2016: £220.7m)
- EBITDA decreased to £29.7m (2016: £33.5m) (on a constant currency basis EBITDA was up 0.9%)
- Capital investment of £9.5m in a new distribution centre opening and in new channel expansion and trading partners - the single largest investment made by FatFace
- Store square footage increased by 4% to just over 400,000 sq ft,
- US trading well with 6 stores open (2016: 3) and first US department store signed
- £15m of debt prepaid driven by strong cash generation, reducing net debt to £135.6m
Anthony Thompson, Chief Executive of FatFace, said:
“In rapidly changing trading and currency environments, this result again demonstrates that FatFace is a resilient business. Trading momentum picked up in the second half of 2017 thanks in part to our policy of full price trading and has continued into the summer and autumn seasons where it has remained strong.
“We continue to make significant progress with our group strategy, doubling the US store estate and moving into a new distribution centre at Dunsbury Park. These business investments will start to see a return in the coming year, when we will also launch a new web platform to support our multi-channel plans for growth.”
“Whilst the current outlook remains challenging, FatFace’s continued focus on quality, design and price integrity, positions the business very well. We are therefore confident that the current momentum will continue during the all-important winter season.”
FatFace Group Ltd
Anthony Thompson, CEO Tel: 023 9244 1124
James Murray Tel: 020 7034 3555
FatFace is a fast-growing lifestyle clothing and accessories retailer, based in the UK.
Having started in 1988 as a business selling t-shirts and sweatshirts in the Alps, we are now one of the UK’s most recognised multi-channel retail brands stocking a wide range of womenswear, menswear, childrenswear, footwear and accessories, all designed in-house at our headquarters in Havant, Hampshire.
There are currently 175 FatFace stores in the UK high street, 40 in UK holiday destinations/transport locations, 4 outlet sites and 12 international stores in the Republic of Ireland and the United States. Together with an established and growing multi-channel offer, our aim is to make the FatFace brand as accessible as possible for our growing base of customers both in the UK and internationally.
1 All numbers quoted are on an exc. VAT basis (unless otherwise stated).