Harsh Christmas for Matalan
The poor performance in Home has continued, with Christmas gift ranges being particularly disappointing.
Total like for like sales reduced by 5.5% in the 10 weeks to 7th January. Within this, clothing performance had strengthened relative to the
early season, reflecting a later demand for seasonal products such as knitwear and coats. Matalan has continued to focus on gross margin which, cumulatively, was up 0.3% across the 19 week period. Within this, clothing gross margin (including grey market) was up 1.3%, offset by additional markdowns taken to clear through underperforming Home ranges. The company continues to focus on strict working capital management and improving cashflows has ensured that we are exiting the Christmas period with a satisfactory stock position.
John King, Chief Executive, said: ‘In a tough trading environment we have maintained market share in our core clothing business, which represents 80% of sales. Home and Christmas gifts performed poorly and actions are underway to address this. We will continue our focus on strengthening gross margins and cashflows.’
