Matalan has announced a robust trading performance for the crucial festive period, stating it outperformed the wider market and is poised for further growth as it welcomes a new chief executive.
Strong Financial Momentum in Q3
The Merseyside-based fashion and homewares retailer reported a 38% increase in EBITDA earnings to £27 million for the three months to November 28. This significant uplift was driven by a 2% rise in like-for-like sales, combined with a strategic focus on operational efficiency and margin improvement.
For the financial year to date, the group's EBITDA stands at £61 million, marking a substantial 53% increase compared to the previous period. The company attributed this powerful performance to strong momentum carried over from the first half of the year, bolstered by these latest quarterly results.
Digital Success and Store Investment
Matalan's digital channel proved to be a standout performer, with online like-for-like sales surging by 11%. The retailer highlighted that its Black Friday event delivered the strongest online sales day in its history, outside of the Covid pandemic period.
To build on this digital success, the company plans to launch a new mobile app and a refreshed customer loyalty programme later this year. Alongside its digital push, Matalan is continuing a significant store investment programme. It has confirmed plans to refurbish 40 more stores in its next financial year, noting that stores already revamped are outperforming the wider estate by an impressive 12%.
Christmas Trading and Market Share Gains
Providing a key update on its Christmas trading, Matalan revealed that like-for-like sales for the nine weeks to January 2 grew by 1% year-on-year. Top-performing categories included women's outerwear and men's formalwear and sportswear.
Critically, the retailer confirmed it gained market share in both womenswear and menswear during the period. The company said this success reflects a renewed product offering and significant improvements in how consumers perceive the Matalan brand.
"Overall, Matalan outperformed the wider market from October through to December, delivering year-on-year sales growth ahead of peers," the company stated.
Leadership Transition and Future Outlook
The positive update comes just a fortnight before Henrik Nordvall is set to join as Matalan's new CEO on Monday, February 2. He will take the reins from Karl-Heinz Holland, the company's executive chair.
Holland commented on the results: "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, he added: "We look forward to welcoming our new CEO Henrik next month and remain confident in the business delivering sustainable profitable growth."
