Fashion chain Fat Face is to open its first US store in Portland, Maine, this November despite having suffered a “bruising” autumn last year which helped push profits down 7%.
Warm weather in October and November hit sales of coats and knitwear, pushing down underlying profits for the year to the end of May to £36.5m, despite a 2.7% rise in sales to £205.4m. The difficult autumn meant sales in established stores fell back so that the top line was only boosted by new store openings and an 11% rise in online sales.
Fat Face wants two stores operating across the Atlantic before Christmas and a further three by next May in its first venture outside the UK and Ireland.
Anthony Thompson, chief executive of the casual clothing business, said Fat Face would be increasing investment beyond the £9m spent last year to help fund its overseas venture.
“I’m pretty confident about the brand and believe it is exportable based on our consumer research,” he said.
The company has already launched a US website and Thompson said shoppers appeared to be buying similar items to their UK counterparts.
Fat Face was founded by Tim Slade and Jules Leaver, who started by selling sweatshirts to fellow ski bums in 1988. It was forced to ditch plans for a flotation last year despite spending £4m on preparations, as investors lost interest in retail stocks after a surge in IPOs.
The company secured £180m in new finance last year after the float plans were ditched. Thompson said it was now focused on its five-year growth schedule. “At some stage we will no doubt think about it [again] but it is not a priority right now,” he said.
