Wednesday, October 18, 2017

Matalan’s Q2 profits spike 570%

95

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.

RELATED: Matalan recruits Simon Lee as new marketing director

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.

Click here to sign up to Retail Gazette’s free daily email newsletter