// Matalan reports a boost in revenues despite admitting it was “feeling the impact” of the ongoing supply chain issues
// The retailer said profits recovered strongly in its first full quarter of trading since the end of lockdown
Matalan has reported improved sales despite the clothing retailer admitting it was “feeling the impact” of the ongoing supply chain issues.
For the 13 weeks to August 28, the retailer reported revenues in the second quarter of £265 million, up from £258 million year on year, with pre-tax profits of £11 million up from a loss of £24 million for the same period last year.
For its half year, the company has reported a revenue of £487 million, up from £333 million, while it made a pre-tax profit of £400,000, a rise from a loss of £78 million.
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Matalan executive chair Steve Johnson cautioned that, like its peers, international supply chain pressures were affecting product availability and margins for the business.
“In common with the broader retail market, over the last few months we have been feeling the impact of disruption within the inbound product supply chain, delaying the flow of stock into the UK and adding extra costs into the process,” Johnson said.
“We are working closely with suppliers and partners to manage and mitigate the effects of this,” said Johnson.
“The combination of the negative impact of product delays coupled with the very positive reaction of our customers to great new product when it does arrive means that we expect availability to remain somewhat compromised over the coming months.”