Matalan narrows losses and hails ‘substantial’ growth opportunities

Retailer continues its store investment plans

Retail giant Matalan has seen its losses narrow as its CEO says it has “substantial” growth opportunities thanks to its loyal customer base.

The Merseyside-based group reported revenues of £987m for the 53 weeks to February 28, up slightly on the £985m seen last year, with online sales in particular rising 10%. But improved margins meant losses narrowed from £67m last year to £55m in 2026.

The group’s preferred EBITDA profitability measure rose 24% year-on-year to £69m, which the group credited to “higher sales volumes and improved margin rates” in a tough and competitive UK retail market.

The company also invested in its ongoing store upgrade programme and in technology and supply chain upgrades, with capital expenditure rising from £17m to £46m.

That momentum continued into the current financial year, with Matalan reporting Q1 revenue growth of 2% year on year, with adjusted EBITDA rising 45% to £14.9m.

Henrik Nordvall, CEO at Matalan, said: “My first few months as CEO have reinforced exactly why I chose to join Matalan. This is a business with a much-loved brand, loyal customers and significant potential, and I have been encouraged by the progress already underway. I have also been struck by the passion our colleagues have for the Matalan brand and the belief they have in its future.

“We delivered strong EBITDA growth and improved gross margin in the period, despite a challenging and highly competitive retail environment, all while continuing to invest in the areas that are driving growth. A major driver of that progress has been our continued focus on delivering everyday style, quality and value for customers, and it is encouraging to see the positive response to improvements in our product offer, the strong performance of our refreshed stores and continued momentum online.

“While we remain mindful of the wider environment, we have started FY27 strongly, with positive sales growth and continued market share gains – particularly in womenswear. What gives us confidence is the scale of opportunity still ahead of us. With a large and loyal customer base, significant untapped omnichannel opportunity and clear evidence that our strategy is working, we believe the long-term growth opportunity for Matalan remains substantial.”