Matalan has welcomed its massive 570 per cent surge in profits in its second quarterly report, despite it experiencing a dip in sales.
The discount retailer raked in £15.4 million in EBITDA profit for the 13 weeks to August 27, a huge jump from the £2.3 million recorded this time last year.
However, sales stood at £245.5 million, six per cent lower than last year.
Despite this, the retailer said full-price sales at the business increased 3.9 per cent compared with the same period last year.
When looking back at the full half-year period, Matalan recorded revenues of £495.6 million, down by four per cent on the same period a year earlier.
Meanwhile, EBITDA jumped by 115 per cent to £31.6 million over the same timeframe and pre-tax losses narrowed by 89 per cent to £2.5 million.
Matalan managing director Jason Hargreaves said the retailer had made “solid progress” over the last quarter.
“Our approach in planning the season was an emphasis on greater coordination, improved availability and full-price sales conversion,” he said.
“This served our customers well, and we delivered an effective exit from the summer ranges in July.”
Hargreaves added that he expected the autumn season to remain “challenging”.
“We remain measured and cautious in our outlook, focused on continuing to progress our proposition,” he said.