Matalan has reported an increase in revenue and profits during a “strong” second quarter for the retailer as it works to build a “stronger, more modern” business.
Matalan has posted total revenue of £288.6m for the 13 weeks to August 26, 2023, up 0.8% from £286.4m in 2022.
It also posted EBITDA of £47.9m, following the adoption of IFRS, up from £36.7m in the same period last year. When restated under IAS 18, EBITDA reached £25.1m for the quarter, up from £13.1m in 2022.
Matalan said in a statement that its performance was “strong” against the backdrop of a “challenging and volatile retail environment”, as the cost-of-living crisis continues to take its toll.
Chief executive Jo Whitfield said: “Shoppers continue to feel the impact of the cost-of-living crisis, spending less often and being more considered with their purchases, while retailers have also faced unseasonable weather patterns.
“We have improved our profitability year on year, driven by a solid sales performance, tight control of markdown, effective cost management and positive movements in input prices.
“Since joining the business [in March 2023], we have worked to develop a clear roadmap of business improvements across the short term while detailed work has begun on developing our long-term strategy.
“We are focused on initiatives that will open up material growth opportunities in the years ahead, while working at speed to deliver better choice, value and experience for our loyal customers.
“I want to thank all of our colleagues, suppliers and partners who continue to work collaboratively to support the transformation of the business.”
In its last trading update for the 13 weeks to May 27, the fashion retailer declared that it had “reshaped” its trading plans in a bid to “improve value” across its autumn/winter collections.
It was recently confirmed that Card Factory has entered into a “long-term partnership” with Matalan as it rolls out a shop-in-shop concept in all 223 of Matalan’s fashion stores across the UK and Ireland.
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