Matalan reports improved sales and profitability
Matalan grew its revenue by 0.8% to £288.6 million in its second quarter despite the impact of the cost of living crisis on customers’ spending.
After the adoption of IFRS 16, EBITDA came in at £47.9 million compared to £36.7 million a year earlier. When restated under IAS 17, EBITDA rose to £25.1 million from a previous £13.1 million.
The clothing and homewares retailer attributed the improved profitability to its sales performance, tight control of markdown, effective cost management, and positive movements in input prices.
Jo Whitfield, chief executive of Matalan, said: “We have delivered a strong Q2 performance against the backdrop of a challenging and volatile retail environment. Shoppers continue to feel the impact of the cost-of-living crisis, spending less often and being more considered with their purchases, while retailers also faced unseasonable weather patterns.”
Whitfield joined the business in March when she succeeded Nigel Oddy who had held the role on an interim basis.
Speaking about Matalan’s new long-term strategy, Whitfield said: “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.”
