Fat Face hails strong Christmas as H1 profit falls
- Strong Christmas sales with sales up 13%
- H1 EBITDA down 0.2% to GBP19.2m
- Flat sales at GBP99m
Christmas sales were up 13%, helped by not discounting prior to Boxing Day
UK lifestyle clothing brand Fat Face has hailed a strong performance during the Christmas trading period, despite posting a fall in first-half profit and sales.
In a trading update today (12 January), the group said total sales grew 13% year-on-year during the five weeks to 3 January, and retail sales were up 5%.
E-commerce sales increased 25%, while click & collect orders peaked at 42% of total orders, 119% up on last year.
The decision not to discount was vindicated by the strong final ten days trading pre-Christmas across all of its stores, the company noted.
"This Christmas was a watershed moment for online, with a number of new trends reflecting the demand for convenience from time-poor customers," said CEO Anthony Thompson. "Our focus remains firmly on our customers who continue to trust in the price integrity associated with Fat Face, whilst benefiting from a genuine Boxing Day sale."
For the 26 weeks to 29 November, however, the business was impacted by the unseasonably warm weather. EBITDA edged down 0.2% to GBP19.2m (US$29.1m) during the period, compared to GBP19.6m last year, while sales were flat at GBP99m.
E-commerce sales rose by 11%, and now represents 16% of overall sales compared to 14% in 2013.
"We've emerged strongly from this trading period and are well positioned for the remainder of the year," Thompson added.
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