Matalan sales plummeted 8% for the 13 weeks ended 27 May 2023, compared to the same period last year.
The fashion retailer’s EBITDA restated under IAS 17 totalled £2.1m, compared to £20.2m the previous year.
Chief executive Jo Whitfield explained cost of living pressure, unseasonal weather and internal operational challenges had led to the business experiencing a challenging first quarter.
However, she said as the company’s new leadership team had come together, their changes came into effect, and weather improved, it had reduced its cumulative EBITDA gap to last year from £18m to £3m.
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Despite the poor results, Matalan also remains confident about its performance for next year.
The retailer forecasts a full year FY24 EBITDA guidance range under IAS17 of £60m-£65m, up from £31m in 2023.
Whitfield said: “Last year the July to February period generated minimal profits and we are confident in a step change in year-on-year profitability in the second half of the year.
“This is supported by an improved and largely hedged cost outlook in relation to the key areas of freight, energy and currency”.
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