Matalan shrugs off the retail gloom as sales rocket on new product lines
BUDGET fashion chain Matalan yesterday said it was defying the retail gloom as it reported a 8.2 per cent boost in like-for-like sales for the 14 weeks to 6 June.
The group, which has 203 outlets across the UK, said it had seen a jump in footfall due to the introduction of new product lines and its value offering. Chief executive Alistair McGeorge said: “Customers continue to respond well to our strategy of offering quality products at fantastic value.”
Low cost fashion and homewares retailers, like New Look and Dunelm respectively, have outperformed higher price rivals in the economic downturn.
The budget firm said its earnings before interest, tax, depreciation and amortisation had increased by 6.3 per cent to £145.1m for the year to the end of 28 February, on a two per cent rise in revenues to £1.04bn.
Matalan’s robust trading resulted in the group paying down £45m of debt, reducing net debt to £247.4m for the year end.
The group is set to roll out an accelerated expansion programme after concluding that there is “significant scope” for new stores in the UK. Matalan is set to open three new stores in the UK this year, continue its store refurbishment programme and expand its online offering.
The group, which was taken private in 2006 by a company controlled by the family of founder John Hargreaves, described market conditions as challenging but added it had outperformed the wider market.