Matalan has posted its results for the 13 weeks ended 27th May ’23 – its first quarter since being acquired by its quartet of lenders.
The retailer generated £236.6 total revenue which was down from £286.5m for the same period last year. However, for the 5 weeks to July 1st 2023, total revenue rose to £122.5m from the £116.1m for the same period in 2022.
CEO Jo Whitfield said: The business had a challenging first quarter with cost of living pressure resulting in depressed consumer spending in discretionary categories. Unseasonal weather delayed a refresh of wardrobes for early spring creating a tough start to the season.
“However, as the new leadership team came together and the initial change we have made started to take effect and as the weather improved, we have been able through June to reduce the cumulative EBITDA gap to last year from £18.1m to £2.9m. We are also confident of strong year-on-year profit improvement across the remainder of the year.
“From an online perspective, there has been a market trend that has shifted demand back towards stores. However, in addition, we have seen our own online sales step back to an even greater extent.”
Matalan migrated to the THG Ingenuity platform at the end of March. Matalan’s online team has been working closely with counterparts at THG Ingenuity to strengthen the online offering and deliver a much improved customer experience.
“We are creating a much stronger Matalan, building on the assets the business already has around brand, customer loyalty and an engaged set of colleagus that want the business to thrive. We are surfacing clear routes to value through operational improvements, margin enhancement and business transformation to enable growth and have a number of initiatives already running across the business to enhance performance and improve profits in the years to come.”