Update comes fortnight before new CEO joins retail giant
Matalan reported a strong Q3(Image: WalesOnline)
Matalan says it outperformed the market at the end of last year as it prepares to welcome its new CEO to drive further growth.
The Merseyside-based fashion and homewares retailer today hailed a “strong” Q3 performance and said it also gained market share in both womenswear and menswear in the run-up to Christmas.
For the three months to November 28, Matalan reported EBITDA earnings of £27m, up 38% on last year, which it credited to like-for-like sales growth of 2% alongside a focus on efficiency and improving margins. The group said EBITDA for the financial year to date was up 53% at £61m thanks to the “strong momentum” it saw in the first half alongside the Q3 results.
Matalan said digital like-for-like sales were up 11%, with Black Friday “delivering Matalan’s strongest ever online sales day outside the Covid pandemic”. The company plans to launch a new app and refreshed loyalty scheme this year to grow digital sales further.
The company is also continuing its store investment programme, with plans to improve 40 more stores in its next financial year. It says stores it has already revamped are “outperforming the wider estate by 12%”.
Matalan also gave an update on key Christmas performance, saying like-for-like sales in the nine weeks to January 2 rose 1% on the same period last year with women’s outerwear and men’s formalwear and sportswear among its top performing categories. The company said “Matalan gained market share across both womenswear and menswear in the period, reflecting the renewed product offer and significant improvements in brand perception.”
And it added: “Overall, Matalan outperformed the wider market in October through to December, delivering year-on-year sales growth ahead of peers.” New CEO Henrik Nordvall is set to join Matalan on Monday, February 2.
Karl-Heinz Holland, executive chair of Matalan, said: “Our business transformation continues to deliver tangible results, with another strong quarter of EBITDA performance, alongside a return to sales growth. This reflects our relentless focus on delivering better quality, style and value, underpinned by sustained investment in product, stores and digital. This has enabled us to outperform the market, despite a challenging trading backdrop.
“Looking ahead, we look forward to welcoming our new CEO Henrik next month and remain confident in the business delivering sustainable profitable growth.”
