UK clothing retailer Fat Face says its Christmas trading performance was “strong on all fronts,” with sales growth over the festive season up by double-digits after it shunned the typical pre-Christmas discounting frenzy.
In a trading update Fat Face said all channels performed well, with wholesale and concession partners’ performance a particular highlight.
For the five weeks to 6 January, total sales were up 12% while like-for-like sales climbed 8%. The retailer also booked its largest ever week of sales during the period. E-commerce sales meanwhile, were up 24% while international sales jumped 49%. Wholesale and partner channels increased by 60%.
“Our trading performance over the Christmas period has been strong on all fronts,” said CEO Anthony Thompson. “We continue to believe that giving our customers price integrity before the big day has been central to this performance.”
Total sales were up 12% to GBP120m (US$162) in the first-half to 2 December, with total EBITDA reaching GBP14.9m, an 8% increase on the prior year. Like-for-like sales increased by 7%, while e-commerce were up 27%, now representing 18% of overall sales, compared to 16% in 2016. International sales up 61% to GBP5.5m.
Kate Ormrod, lead retail analyst at GlobalData, notes Fat Face’s sales growth over the festive season was likely helped by the colder weather given its focus on outerwear and knitwear.
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By GlobalData“Its ability to sell product at full price should not be downplayed – especially given that other midmarket clothing retailers such as Debenhams, Gap and Next have difficulty in doing so,” she adds. “While Fat Face is one of only a few retailers to rein in discounting, particularly in Q4 – with the casualwear player also not partaking in Black Friday – we expect more to follow suit next year, with margin pressure forcing retailers to focus on driving full price sales.”
