Matalan narrows losses and lifts EBITDA as turnaround gains pace
Matalan has narrowed its pre-tax loss in the year to 28 February to £55 million from £67 million in the previous 12 months.
The fashion and homewares retailer also increased EBITDA by 24% year-on-year to £69 million following higher sales volumes and improved margin rates.
Subscribe to TRBSales edged up 0.2% to £987 million, although online sales climbed by 10% as the retailer invested in its omnichannel proposition.
Henrik Nordvall, Matalan’s recently appointed chief executive, said: “My first few months as CEO have reinforced exactly why I chose to join Matalan. This is a business with a much-loved brand, loyal customers and significant potential, and I have been encouraged by the progress already underway.
“We delivered strong EBITDA growth and improved gross margin in the period, despite a challenging and highly competitive retail environment, all while continuing to invest in the areas that are driving growth.”
During the year, Matalan worked to improve style and quality while maintaining its value proposition. It also continued to invest in refitting, which meant refreshed stores outperformed the wider estate by 12% in the year. Matalan is also planning to launch a new app later this year.
On current trading, the retailer said revenue grew by 2% year-on-year in the first quarter of its new financial year, with adjusted EBITDA up by 45% to £14.9 million.
Nordvall said: “While we remain mindful of the wider environment, we have started FY27 strongly, with positive sales growth and continued market share gains – particularly in womenswear.
“What gives us confidence is the scale of opportunity still ahead of us. With a large and loyal customer base, significant untapped omnichannel opportunity and clear evidence that our strategy is working, we believe the long-term growth opportunity for Matalan remains substantial.”
