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Consumer confidence knocks Matalan turnover

Matalan has reported a 1.2% year-on-year decrease in total revenues to £311.7m for the 13 weeks to 30 November 2019, as a result of continued “depressed” consumer confidence. 

EBITDA after adoption of reporting standard IFRS16 was £59m during the same period. Restated EBITDA under IAS 17 was £33.7m, compared with £40m in the same months of 2018. 

The fashion and homeware retailer’s closing cash was £73.1m, against £91.2m in 2018.

Matalan posted a 0.6% rise in revenue growth to £134.3m for the five weeks to the 4 January 2020, compared with the same period in 2018/19. 

Online sales during the period grew by 25%. 

“The challenges faced by ourselves and the wider market have been well documented and our results released today continue to reflect that backdrop,” Jason Hargreaves, CEO of Matalan, said. “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: “In the ever-changing landscape retailers are now faced with, it’s more important than ever to evolve and to be agile, efficient and deeply connected to our customers. So whilst adapting to the immediate market and responding to this year’s challenges, we have also progressed our strategy. This will continue in the year ahead.

“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%. 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.”

 

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