FatFace recently reported a financial loss following its acquisition by Next, claiming a strategic focus on profit rather than sales growth.
- The fashion retailer faced a pre-tax loss of £3.2 million for the 35 weeks ending 27 January, dropping from a £19.5 million profit the previous year.
- Exceptional costs of £7.9 million were incurred, largely attributed to the acquisition by Next in October 2023.
- The company’s total sales reached £191.5 million, with UK revenues contributing £172.5 million.
- CEO Will Crumbie emphasised the company’s successful performance despite external challenges, highlighting strong customer engagement and an effective digital presence.
FatFace has encountered financial difficulties following its acquisition by retail giant Next. The company reported a pre-tax loss of £3.2 million for the 35 weeks ending January 27, a significant decline from the £19.5 million profit recorded in the previous year. This downturn was accompanied by exceptional costs amounting to £7.9 million, which the company attributed mainly to the recent acquisition.
Acquired by Next in October 2023 for £115 million, FatFace has been navigating the complexities of this transition. Despite the financial loss, the company’s sales figures stood at £191.5 million, with a strong contribution from UK revenues amounting to £172.5 million, indicating stable consumer demand within the region.
In an official statement, FatFace CEO Will Crumbie expressed optimism, noting the company’s resilience in the face of a challenging economic environment. He stated, ‘Against the backdrop of a challenging external environment, we have delivered a robust performance for the 35-week period.’ Crumbie also praised the emphasis on full-price sales, which led to an improvement in margins and profit before tax, and noted the continued appeal of their products among a growing customer base.
Furthermore, the CEO highlighted the company’s strategic focus on enhancing customer experience both in physical stores and online. According to Crumbie, ‘Our stores continue to be fantastic places to visit and shop, and our digital presence remains a key part of our offer.’ This dual approach is seen as vital for sustaining customer engagement and driving future growth.
FatFace remains committed to navigating its financial challenges while enhancing its market presence post-acquisition.
