Fashion and homewares retailer Matalan has seen EBITDA increase 8.6 per cent to £45.3 million in its third quarter despite a decline in total revenue, figures released today reveal.
In the 13 weeks ended November 24th 2012, total revenue fell 0.4 per cent to £309.5 million though the retailer pointed out that it has worked hard to improve its margins over the period.
In terms of Christmas trading, total revenue dipped 1.5 per cent in the five weeks to December 29th 2012, a disappointing figure given Matalan’s attempts to reduce markdown in comparison with the same period last year.
Darren Blackhurst, Matalan’s CEO, said of the figures: Whilst headline revenues are broadly in line with last year, this should be viewed in the context of the promotional activity that took place last year.
“We have deliberately focussed on the quality of our earnings throughout the current quarter and into December, and have delivered a robust improvement in margins.
“Our active customer base is growing, the quality of our offer for customers is improving and we continue to improve our earnings.
“We have exited the peak trading period with a good stock position and a strong cash balance.
“The market continues to be challenging and competitive and we therefore remain cautious in our outlook.”