Fat Face has swung to a loss as sales dip post Next acquisition

For the 35 weeks to January 27, 2024, Fat Face reported a pre-tax loss of £3.26m in a shorter trading period, which aligned with that of owner Next.

Revenue during the year also dipped from £205.4m to £191.6m, but the fashion retailer noted cost savings that resulted in trading profit before tax increasing from £18.8m to £19.5m.

Fat Face said that the business has had a “stable period” despite ongoing “external economic headwinds”, rising inflation and the cost-of-living crisis.

Store revenue via Fat Face stores during the year reached £121.4m, which the retailer said remain “fantastic places to visit and shop” while online sales hit £71m and the business said its ecommerce offer remains “a key part” of its strategy.

Fat Face chief executive Will Crumbie said: “Against the backdrop of a challenging external environment, we have delivered a robust performance for the 35 week period. Our focus on full price sales led to an improvement to margin and profit before tax as our beautiful products continue to resonate with our growing customer base. Our stores continue to be fantastic places to visit and shop, and our digital presence remains a key part of our offer.

“During the period we took an important step in Fat Face’s journey, announcing our sale to Next plc in October 2023. This is testament to the hard work of all colleagues who have built the brand’s strong heritage, quality products and excellent customer service to emerge even stronger in recent years. Since this announcement, we have continued to focus on our core operations while investing in the integration of our platforms, due to go live in September 2024.

“I’d like to thank all colleagues for their support over this period. This is an exciting time at Fat Face as we look to leverage our new ownership with Next plc, harnessing the scale and expertise of this market leading retailer, enabling our brand and our products to reach even more customers.”

This comes after Next acquired Fat Face in a £115.2m deal last October, which saw the fashion giant take a 97% stake in the business while Fat Face’s management retained 3%.