Weakened pound hits Face Face profits
Fat Face has posted a rise in sales but its profits have been hit by the devalued sterling.
As a result, the retail chain successfully negotiated a “convenant reset” with lenders over its £149 million debt.
In its full year report, released last Friday, Fat Face’s pre-tax profits dropped by nine per cent to £22 million while its sales went up by 7.2 per cent to £220.2 million.
The sales were boosted by a 20.6 per cent jump in ecommerce sales, which made up 18.2 per cent of the retailer’s overall revenue.
Meanwhile, international revenue was flat, coming in at £4.9 million for the year.
Fat Face also opened eight new stores in its estate last year, bringing its total estate to 225 stores across the UK and Ireland.
Despite the post-Brexit decline in the pound taking its toll on profits thanks to rising costs associated with currency pressures, Fat Face had plans to open more new stores this year.