admin British fashion and homeware retailer Matalan has shared its financial results for the second quarter ended August 26, revealing improving profits but stalling sales.
For the 13-week period, the retailer reported revenue of 288.6 million pounds, a marginal increase from the 286.4 million pounds it generated during the same period the previous year.
Following the adoption of IFRS 16, Matalan’s EBITDA for the quarter was 47.9 million pounds, up from 36.7 million pounds.
When restated under IAS 17, the EBITDA came in at 25.1 million pounds, compared to 13.1 million pounds in the prior year.
‘Challenging’ retail environment
Matalan chief executive Jo Whitfield hailed a “strong” Q2 performance amid “a challenging and volatile retail environment”.
She said customers continue to feel the impact of the cost-of-living crisis and are “spending less often and being more considered with their purchases”.
“We improved our profitability year on year, driven by a solid sales performance, tight control of markdown, effective cost management, and positive movements in input prices,” she continued.
Whitfield was appointed as new chief executive of Matalan in March, replacing interim CEO and former New Look boss Nigel Oddy who was brought in for a six-month role.
Whitfield continued: “Since joining the business, we have worked to develop a clear roadmap of business improvements across the short term whilst detailed work has begun on developing our long term strategy.
“We are focused on initiatives that will open up material growth opportunities in the years ahead, while working at speed to deliver better choice, value and experience for our loyal customers.”
