STRONG RESULTS IN THE UK AND US DRIVE ANOTHER YEAR OF GROWTH AT FATFACE
UNAUDITED FINANCIAL RESULTS FOR THE 52 WEEKS TO 2 JUNE 2018
FatFace, the UK lifestyle clothing brand, today announces its financial results for the 52 weeks to 2 June 2018. The company reports a strong year as it grew both sales and EBITDA, with the positive momentum created in the prior year continuing. Five new stores were opened in the US where the business continues to trade strongly.
Full year highlights:
Total sales increased by 7.4% to £238.4m (2017 (52 weeks): £221.9m)
Retail like-for-like of 4.9% led by a strong womenswear performance
E-commerce sales up 11.8%, now representing +18.2% of the business (2017: 17.2%)
EBITDA increased by 5.6% to £30.2m (2017 (52 weeks): £28.6m) (on a constant currency basis EBITDA was up 23.4%)
Five new stores opened in US - 11 stores in total now trading there achieving 20%+ like- for- likes in annualising stores
Strong cash generation reduces external net debt by £11.4m to £112.1m
E-commerce website enhanced to provide additional functionality and capacity.
Estate now comprises 233 stores worldwide (2017: 228)
Anthony Thompson, Chief Executive of FatFace, said:
“We’ve had a really strong year at FatFace, growing both sales and EBITDA and maintaining the positive momentum created in the prior year. This was thanks to the hard work and investment in the business over the last 24 months. Our longstanding full price trading stance also continued to work well, especially at key trading times.
We made further investment in E-commerce and successfully added increased capacity at our distribution centre. As a result, the business has strong foundations on which it can build in the coming five years.
The implementation of our longer term strategy is on course. Expansion in the US continued and the business there is trading strongly. With the initial market trial concluded, we are now undertaking a measured roll out programme.
Our focus remains on customers and product. During the year we continued to differentiate the FatFace ranges based on investment in quality, unique design and exclusive collaborations. Highlights this year included working with Graduate Fashion Week, Liberty, Natural History Museum as well as our ongoing relationship with the Princes’ Trust. These have allowed us to introduce bespoke product and unique designs. During the year, we also successfully introduced a semi-formal range - Copper & Black - which has been received well by customers.”
Mr Thompson added: “The current retail environment remains difficult and there appears to be no prospect of conditions improving in the short term. We will continue to be focussed on quality, design and price integrity and will seek to continue the positive momentum in today’s results in the coming 12 months.”
FatFace Group Ltd Anthony Thompson, CEO Tel: 023 9244 1179
Bridgepoint 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 216 FatFace stores in the UK, and 17 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).