FatFace posts rise in annual sales but profit drops 8 percent

For the 52 weeks to May 28, FatFace has reported an increase of 7.4 percent in sales to 220.7 million pounds (292 million dollars), with ecommerce sales alone witnessing a surge of 20.6 percent. However, the company’s EBITDA declined 8 percent to 33.5 million pounds (44.3 million dollars).

Chief Executive Anthony Thompson attributed the decline in earnings to investment in the business combined with the dollar strengthening against the pound and the clothing sector trading adversely.

Further expanded retail presence in the UK

During the year under review, the retail chain opened doors to 12 new stores in the UK. The company also made investments in a new distribution centre and opened a new US dedicated website as well as three physical stores along the east coast. The UK-based retail chain was acquired by private equity firm Bridgepoint in 2007.

Thompson is hopeful that the new projects, including opening three shops on the East Coast of the US and plans for a new distribution hub at Dunsbury Hill Farm in Portsmouth, would begin to bear fruit next year.

The company established in the 1980s by founders Tim Slade and Jules Leaver, operates 228 stores in the UK, Ireland and the US.

Picture:FatFace