Brexit not so bruising for discount fashion firm

Discount retailer Matalan has said it is “well positioned” to cash in on Britain’s slowing economy and a Brexit squeeze on consumer spending as it posted rising sales.

In a trading update for the 13 weeks to 27 May, the firm reported a 1.3 per cent increase in revenue to £253.4 million, driven by a 21.5 per cent increase in full-price sales.

Earnings rose from £16.2m to £22.3m in the period, and chief executive Jason Hargreaves pointed to a climate of uncertainty and tough times for shoppers in a “challenging market”.

He said: “Consumers face tough times at present. Inflation is rising and they are surrounded by economic uncertainty. In such a climate Matalan is well positioned to offer fantastic design and quality at outstanding value.

“We don’t expect the retail environment to improve in the near term, so remain cautious, but are pleased with how the business is progressing with improvements to the ranges, store estate, and strong growth in the online channel.”