// Matalan Q2 profits drop due to ongoing political uncertainty
// In the 14 weeks to August 31, EBITDA fell by 28.5% year on year
// Matalan generated sales of £292 million during the period
Matalan has recorded a drop in second quarter profits thanks to “awful” spring weather.
The fashion retailer saw EBITDA fall by 28.5 per cent year on year to £16.3 million in the 14 weeks to August 31.
However, Matalan generated sales of £292 million during the period, up 11.3 per cent year-on-year.
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Cchief executive Jason Hargreaves said the “extremely tough” trading environment was worsened by “awful” spring weather, which held back full-price sales.
This resulted in “significant margin investment” in order to sell surplus products, but Hargreaves insisted Matalan “succeeded in doing effectively”.
He also blamed the “ongoing political and economic uncertainty” weighing heavily on consumer confidence.
“We expect the autumn/winter season to remain challenging and are focused on balancing the delivery of growth opportunities against the need to effectively manage stock risk and profitability,” Hargreaves said.