Matalan remains cautious on outlook after profits fall 63%
Profits at Matalan fell by 63% to £13.6 million in its second quarter on revenue down 1.7% to £285.5 million. In the 13 weeks to 27 August Ebitda fell to £13.6 million.
The discount fashion chain blamed the fall on higher input costs and difficult trading conditions particularly in June when its rivals began discounting earlier than usual.
There was some improvement in July and August due to the introduction of its ‘Line & Price‘ strategy although September sales were affected by the warmer weather in the last week of the month.
Menswear and childrenswear performed well but sales of ladieswear were "challenging". The retailer saw its online sales double.
For the 26 weeks to 27 August sales fell 1.7% to £526.6 million. Ebitda dropped 47% to £41.2 million in the period.
Darren Blackhurst, Matalan's chief executive, said: "The challenging conditions faced in the first quarter continued into the second quarter. While we do not expect these conditions will change in the near future, Matalan continues to be a profitable, cash generative and robust business with growth opportunities."
Matalan, which operates 212 UK stores and six stores overseas, opened a new shop in Crawley in the period and plans to open an additional new store in Newtownards in County Down.
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