Matalan posts 4.9% quarterly revenue growth

742
Matalan update

Matalan has continued to defy the ongoing challenges facing UK retail with a 4.9 per cent uptick in revenue in its first quarter.

For the 13 week period ending May 26, the value fashion retailer said total revenue came in at £265.9 million, compared to the £253.4 million recorded in the same period last year.

It also recorded an EBITDA of £24.8 million, more than the £22.3 million recorded last year.

It added that as its store refurbishment scheme continued, it delivered growth from both its bricks-and-mortar arm and also its online channel, which grew by 39 per cent.

Matalan chief executive Jason Hargreaves said the retailer’s “strong” first quarter results came about from good stock management, an agile customer contact strategy and a flexible operating model.

“Our stores and online channels work in a complementary manner giving customers the convenience and flexibility they are looking for,” he said.

“Greater product choice, an improved in-store shopping experience and further enhancements to the website have all been really well received.”

He added: “We don’t expect the retail climate to improve in the short term and market conditions will remain difficult.

“Currency pressures on operating margins are ongoing. We are therefore cautious in our outlook but confident that our strategy is delivering for customers which positions us well.”

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