Matalan profits & sales drop in golden quarter

1198
Matalan profits & sales drop in golden quarter
Matalan was not immune to the challenges plaguing the high street in the closing months of 2019.
// Matalan’s Q3 revenue dipped 1.2% to £311.7m in 13 weeks to Nov 30
// EBITDA fell by more than £6 million to £33.7m in same period
// Over the 5 weeks to Jan 4, which includes the Christmas shopping period but not Black Friday, sales increased 0.6% to £134.3m

Matalan was not immune to the challenges plaguing the high street in the closing months of 2019 as revenues and profits dropped.

Revenue hit £311.7 million for the 13 weeks ending November 30, a 1.2 per cent drop from the same period a year earlier.

The third quarter results also showed that EBITDA fell by more than £6 million to £33.7 million.

The retailer had £73.1 million in cash at the end of the year, compared with £91.2 million a year earlier.


READ MORE: 


The news comes as high street shops are facing some of the toughest times in years, with shoppers buying less than in the past.

Over the five weeks to January 4, which includes the Christmas shopping period, but not Black Friday, sales increased 0.6 per cent to £134.3 million.

“The challenges faced by ourselves and the wider market have been well documented and our results released today continue to reflect that backdrop,” Matalan chief executive Jason Hargreaves said.

“Consumer confidence and spending remained depressed in the midst of unprecedented levels of political uncertainty throughout the autumn/winter season.”

Hargreaves said the retailer was starting to see results from the new initiatives it took to strengthen its stores.

“In the ever-changing landscape retailers are now faced with, it’s more important than ever to evolve and to be agile, efficient and deeply connected to our customers,” he said.

Matalan has refurbished several of its stores and invested in its online business, which is growing by 25 per cent.

“Despite remaining cautious in a tough market, I’m confident that, with the support of our colleagues, we will have a stronger 2020,” Hargreaves said.

with PA Wires

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