FatFace has confirmed the closure of its US stores as it transitions to an online-only model in the region, but reaffirmed its UK stores remain a core part of the business, underscoring their continued importance in driving its ongoing growth strategy.
The decision was driven by rising operational costs, which have made the current store model unsustainable in the region.
As a result, the British fashion brand will shift to an online-only presence in the US, supported by NEXT’s Total Platform.
"Looking ahead, we remain focused on scaling our digital capabilities and bringing our high-quality designs to a wider audience," a spokesperson told TheIndustry.fashion.
Looking ahead, the business also plans to expand its online offer to new international markets beyond the UK and US.
It comes as FatFace reports a decline in revenue from £267.7 million in 2024 to £237.4 million in 2025, with results described as "fully in line with expectations".
For the 52 weeks ending 25 January, profit before tax also fell year-on-year from £21.6 million to £16.9 million, as the business continued to invest in new systems aimed at driving long-term growth.
The company noted that this strategy has had a "positive" impact on trading since the year end, with profit before tax in the first half of the current year ahead of the same period last year.
Full-price sales also rose 6.6%, while UK store performance improved 3.4%. Trading through NEXT has surged 86% year-on-year, following its acquisition of FatFace by the retail giant at the end of 2023.
Will Crumbie, CEO at FatFace, said: "We have made good progress this year in executing our strategy and financial objectives. We continued to focus on full price sales, with a strategic approach to discounting at specific times of the year. Our store network continues to be a core part of our offer with new stores opened in the year, including in Blanchardstown in Ireland bringing our high-quality clothing to even more communities.
"This is our first set of financial results reporting a full year of trading as part of the NEXT. Over the past year, we have successfully migrated our systems onto the NEXT Total Platform infrastructure. While with any digital migration it can take time, this move will give us additional digital capabilities to enhance the experience for our customers and more seamlessly manage our operations.
"Looking ahead, we will continue to harness the fundamental strengths of the FatFace brand and business to drive our performance further. This means never compromising the quality of our products, being laser focused on our multi-channel offering, all the while remaining dedicated to sustainability. Our focus now is on growth; growing our customer base in the UK and beyond while staying true to our brand values."
