Online helps Matalan defy High Street gloom to post 4.9% revenue rise
Matalan says its revenue for the quarter ending May 26th increased by 4.9% to £265.9 million, bucking the recent spate of gloomy results from High Street retailers.
That performance compares to £253.4 million for the the same period in 2017, while EBITDA came in at £24.8 million, up nearly £22.3 million on the year before.
The fashion and home interiors specialist has invested heavily in its online operations over the last 12 months, with sales from digital up an impressive 39% during the quarter.
That said, the company has also continued to invest in its bricks and mortar sites with an ongoing refurbishment programme – it says its online and High Street buoyancy is the result of good stock management, an agile customer contact strategy and a flexible operating model.
Jason Hargreaves, Matalan’s Chief Executive, said: “Our stores and online channels work in a complementary manner giving customers the convenience and flexibility they are looking for… Greater product choice, an improved in-store shopping experience and further enhancements to the website have all been really well received.”
“We don’t expect the retail climate to improve in the short term and market conditions will remain difficult. Currency pressures on operating margins are ongoing. We are therefore cautious in our outlook but confident that our strategy is delivering for customers which positions us well.”