Matalan sales edge up in third quarter

Matalan has reported a slight increase in revenues for the third quarter of the year and across the festive shopping period.

For the 13 weeks to 30 November, the British fashion and homeware retailer saw revenue increase 1.1 percent to 311.7 million pounds from 308.3 million pounds in the same period a year prior.

During the peak festive shopping period to 4 January 2020, total revenue was 134.3 million pounds compared to 133.5 million pounds in the same period the year before. Online sales grew 25 percent, while the company said Boxing Day Sale entry volume was in line with last year.

EBITDA post adoption of IFRS16 was 59 million pounds, while restated EBITDA under IAS 17 fell 6.3 million pounds to 33.7 million pounds.

Matalan ‘remaining cautious in a tough market’

Commenting on performance in a statement, Matalan CEO Jason Hargreaves, said: “The challenges faced by ourselves and the wider market have been well documented and our results released today continue to reflect that backdrop. Consumer confidence and spending remained depressed in the midst of unprecedented levels of political uncertainty throughout the autumn/winter season.

“Following an extremely poor market in September, described by the BRC as the worst on record, the actions taken to further strengthen our proposition are starting to positively impact. The scale of margin investment required to manage stocks and trade effectively is reducing and I am confident this progress will continue as there will not be any material stock hangover.

Hargreaves added that amid an ever-changing retail landscape, the business needs to “evolve and to be agile, efficient and deeply connected to” its customers. He said: “We are giving customers a better all round experience, providing additional product choice, fantastic new and refurbished store space, and a further improved online journey. Our online business is growing at a rate of 25 percent. Alongside this we will continue to benefit from our investments in driving operational efficiency and improving our stock management capabilities. Therefore, despite remaining cautious in a tough market, I’m confident that with the support of our colleagues we will have a stronger 2020.”

Photo credit: Matalan, Facebook