Matalan has attributed its full price sales drive for boosting its annual earnings by more than third, despite a dip in revenues.
The Merseyside-based retailer recorded an EBITDA of £77 million for the 52 weeks ending February 25, a 37 per cent year-on-year increase.
It also raked in £9.2 million in profits before income tax and exceptional items compared to the previous year’s losses of £12.7 million.
While total revenues slid by two per cent to £1.04 billion, there was a 7.5 per cent uptick in full-priced sales.
Chief executive Jason Hargreaves hailed the year as a “huge progress” after Matalan, known for being a value retailer, re-established itself as a full-priced retailer.
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The retailer said its improvement in the full-priced sales offering was driven by stronger clothing ranges, increased levels of coordination, and a better in-store customer experience.
“The product offer has continued to improve, as has our execution and brand reach, supporting the strong growth in full-priced sales,” Hargreaves said.
“Last year’s operational challenges are behind us and we now have a supply chain capable of effectively supporting the business going forward.
“Significantly more customers are now shopping multiple channels, and our online business is achieving strong and sustainable growth. We believe there is also material further growth potential ahead.
“We expect the market to remain very challenging, but are clear as to how we will focus our efforts on the key areas that will drive sustainable performance improvement. With the continued hard work and commitment of our colleagues, we are confident that the business will further deliver on the solid foundations we have laid this year.”