FatFace, a well-known fashion retailer, has reported financial setbacks following its acquisition by Next.
- During the latest financial year, FatFace experienced a pre-tax loss of £3.2 million, a significant drop from a £19.5 million profit the previous year.
- Exceptional costs related to the Next acquisition amounted to £7.9 million, heavily impacting the financial outcome.
- Despite challenges, FatFace focused on improving margins and profit before tax through full-price sales.
- CEO Will Crumbie highlights the resilience of the brand’s stores and digital presence amid a tough environment.
FatFace, the fashion brand, has encountered financial difficulties post-acquisition by Next, a significant player in the fashion and homewares sector. For the 35 weeks ending January 27, FatFace reported a pre-tax loss of £3.2 million, compared to a £19.5 million profit in the preceding year. This downturn comes amid exceptional costs of £7.9 million largely attributed to the acquisition process by Next, which took place in October 2023 for £115 million.
Despite the financial setbacks, FatFace has prioritized profitability over sales growth. The brand’s total sales were recorded at £191.5 million, with the UK revenues reaching £172.5 million. CEO Will Crumbie remarked on the brand’s performance in challenging conditions, emphasizing their concentration on full-price sales which contributed positively to margins and pre-tax profit.
Crumbie expressed confidence in the company’s operations, citing the allure and quality of their products as a draw for their expanding customer base. He also affirmed the strategic importance of their physical stores, which remain appealing shopping destinations, and the company’s robust digital platform that continues to play a crucial role in their overall business strategy.
FatFace remains committed to navigating its post-acquisition phase with a focus on robust performance and strategic presence.
