Matalan records 38 percent EBITDA growth following strategic investment

UK value retailer Matalan has reported a robust financial performance for the third quarter ended November 28, 2025, supported by a significant rise in profitability and a return to positive sales momentum. The company delivered a 38 percent increase in EBITDA on a pre-IFRS 16 basis, reaching 27 million pounds (36.3 million dollars).

This quarterly growth contributes to a strong first half of the 2026 financial year, during which year-over-year EBITDA rose 53 percent to 61 million pounds for the year to date. The results were driven by a like-for-like sales increase of 2 percent during the third quarter, alongside a strategic focus on margin protection and operational efficiencies.

Digital channels emerged as a primary growth driver, with LFL online sales climbing 11 percent in the third quarter. The retailer recorded its strongest online sales day outside the Covid-19 pandemic during Black Friday, an achievement the group attributes to continued investment in its digital infrastructure.

Digital and store investments yield market share gains

Matalan is preparing to further enhance its digital proposition with the launch of a new native app later this year, coinciding with a refreshed loyalty scheme. Physical retail remains a core component of the strategy, as refreshed stores currently outperform the wider estate by 12 percent. Consequently, the group plans to upgrade 40 additional locations during its next financial year.

During the peak trading period, which encompasses the nine weeks ended January 2, 2026, LFL sales rose by one percent. The retailer reported particularly strong performance in women’s outerwear, as well as menswear categories such as formalwear and sportswear. These results allowed the company to gain market share in both womenswear and menswear during the golden quarter.

The executive chair of Matalan, Karl-Heinz Holland, stated: “Our business transformation continues to deliver tangible results, with another strong quarter of EBITDA performance, alongside a return to sales growth. This reflects our relentless focus on delivering better quality, style and value, underpinned by sustained investment in product, stores and digital.”

Matalan will undergo a leadership transition on Monday February 2, 2026, when it welcomes its new chief executive officer, Henrik Nordvall. Nordvall joins a business that Holland describes as being on a path toward “sustainable profitable growth” despite a challenging broader economic backdrop for the fashion industry.