Group let down by Christmas and homewares
Pre-tax profit at Matalan fell from£80.5 million to£56.7 million, according to preliminary results released today. Like-for-like sales at the value clothing and homeware chain dropped 6.9 per cent for the year ending February 25.

The group blamed its poor performance on underachieving homewares and Christmas gifts ranges. Like-for-like clothing sales fell 1.6 per cent.

Chief executive John King said: 'Much work has been done to improve our retail proposition and progress has been made, particularly in our core clothing business. The retail environment remains subdued and pressure on costs continue. However, against this difficult backdrop, I am pleased that Matalan has improved its market share in clothing.'

Trading has improved this financial year, but like-for-like sales were down 2.2 per cent in March and April.

Matalan has recently been subject to takeover speculation. Founder and executive chairman John Hargreaves, who owns a 53 per cent stake in the company, is understood to be interested in selling the company for the right price.

The group is also searching for a new chief executive to replace King, who handed in his notice in January. He will continue in his role until the end of the year.

The group has 190 UK stores.

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