Fatface counts the cost of takeover by Next as fashion retailer enters the red
Fatface slumped into the red in the aftermath of its takeover by FTSE 100 giant Next last year, it has been revealed.
The Hampshire-headquartered business was acquired by the Leicester-based giant for £115.2m in October 2023.
Newly-filed accounts with Companies House show that Fatface fell to a pre-tax loss of £3.2m in the 35 weeks to 27 January, 2024, a financial period shortened to align with that of Next.
Despite posting a pre-tax profit of £4.6m from its trading, Fatface incurred exceptional costs of £7.9m – the majority relating to its acquisition by Next and integrating into its systems.
Over the same period, the fashion retailer’s revenue totalled £191.5m.
In its prior full financial year, Fatface’s revenue stood at £281.3m while it posted a pre-tax profit of £19.5m.
The revenue Fatface generated through its stores totalled £121.4m in the 35-week period while its digital sales amounted to £71m.
Also during the period, its UK sales were £172.5m while its revenue in the USA was £14m. Its sales in the Republic of Ireland totalled £4.6m and £1.3m in Canada.
In its previous 12-month financial year, the firm’s revenue from its shops came in at £168.1m and its digital sales were £112.9m.
In the UK, its sales had been £257.6m, £19.2m in the USA, £4.6m in the Republic of Ireland and £150,000 in Canada.
In the 35 weeks to 27 January, 2024, the average number of people employed by Fatface was 2,721. In its prior 12 months, that total stood at 2,490.
Fatface focusing on ‘core operations’
Fatface CEO Will Crumbie said: “Against a 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 Fatface’s journey, announcing our sale to Next plc in October 2023.
“This is a 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.
“I’d like to thank all colleagues for their support over this period.
“This is an exciting time at Fatface as we look to leverage our new ownership with Next, harnessing the scale and expertise of this market leading retailer, enabling our brand and our products to reach even more customers.”