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Sales up at Matalan

Revenue at Matalan was up 2.9% to £273.5m for the 13 weeks to 25 May, despite a “significant deterioration” in the UK market throughout the quarter.

EBITDA at the value retailer was up 0.8% to £24.8m for the quarter, compared to the same period in 2018. 

The business had a closing cash position of £71.2m. 

Jason Hargreaves, chief executive of Matalan, said: “The results released today represent a solid first quarter in many respects. Sales growth was delivered in both complementary store and online channels, with online growing by almost 30%. Underlying margin and cost performance also absorbed a £4m currency headwind in delivering profitability in line with last year. Alongside this we opened some fantastic new stores in Leeds, Bracknell and Wolverhampton that have been really well received by customers.

“Although we delivered solid overall results, the market deteriorated significantly through the course of the quarter. An improvement to the awful spring weather failed to materialise until late June, the May market being one of the toughest we have seen in a number of years. As a result, the market began to discount earlier and to a greater extent than expected, and we ourselves had to react and begin promoting seasonal stocks. Whilst having a manageable impact on the first quarter’s results, there will be more significant dilution to margins in the second quarter as we exit the summer season.

“Despite this we continue to make good progress with our strategic areas of focus. These include refurbishing our store estate, improving our online customer journey, and always looking to give our savvy customers even more choice and value. This customer centric approach has made us a strong and relevant business that is well positioned within the market. Whilst we react to immediate trading conditions, we remain confident in the longer term direction and progress we are making.”

 

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