Matalan defies gloom as sales rise
Matalan has defied the gloom on the high street with rising revenues in the first quarter of its financial year.
For the 13 weeks ended May 26, the clothing retailer’s total revenues grew five per cent from £253.4 million to £265.9 million. Online sales rose 39 per cent.
Earnings before interest, tax, depreciation and amortisation were up 11 per cent to £24.8 million.
Matalan chief executive Jason Hargreaves said: “Our first quarter represents a strong set of results. Good stock management, flexibility in our operating model and agility in our customer contact strategy helped us outperform a volatile market.
“Thanks to the hard work of our colleagues, we continue to deliver consistently for customers and can be pleased with our performance.”
He said he does not expect the UK’s retail environment to improve.
Retailers have been hit with costs from weaker sterling, alongside rising business rates and labour costs.
“Currency pressures on operating margins are ongoing,” he said.
“We are therefore cautious in our outlook but confident that our strategy is delivering for customers which positions us well.”
Mr Hargreaves took home £1.5 million last year after securing a successful refinancing package for Matalan, which has 227 stores in the UK.
Accounts filed at Companies House show that Matalan’s highest-paid director, thought to be Mr Hargreaves, earned a £900,000 bonus on top of a basic pay of £600,000.
Pre-tax profit for the year to February 24 more than doubled to £20 million.