FatFace confirms US store closures as digital pivot comes into focus

British brand FatFace has shuttered its 23 stores across the US as it moves towards a digitally-focused approach amid a challenging market. Rising costs were said to be the driving force behind the closures, as the physical store model was deemed to no longer be viable in the US.

Despite this, the brand has confirmed an intention to move to an online-only approach in the region, powered by Next’s Total Platform, within which its systems have been successfully migrated into the infrastructure.

FatFace is also planning to expand its online offering to new international markets beyond the US and UK. In the latter, the company’s stores remain unimpacted and continue to be a part of the business model.

Full-year revenue and profit drop yet sales increase

The news comes as FatFace posted a drop in revenue from 267.7 million pounds in 2024 to 237.4 million pounds in 2025. According to the company, the results fell in line with expectations.

Profit before tax fell year-on-year for the 52 weeks to January 25 to 16.9 million pounds, as stated in reports by various media outlets. The retailer attributed this decline to increased investments into new systems that intend to move it towards long-term growth.

Full price sales rose 6.6 percent, as did UK store performance, where like-for-like sales were up 3.4 percent. This is largely due to investments into the UK store estate carried out over the fiscal year.

FatFace’s trading was up 86 percent YoY through Next, which acquired the retailer back in 2023 for a 115.2 million pound sum. Gross margins, meanwhile, rose 1.7 percent, aided by tighter promotional activity and better full price sales.

In a statement, Will Crumbie, FatFace’s chief executive officer, said the company had made “good progress” in executing its strategy and financial objectives”. “We continue to focus on full price sales, with a strategic approach to discounting at specific times of the year,” he noted.

Crumbie continued: “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.”