Matalan reports surge in Christmas sales
Fashion and homeware retailer Matalan saw a 9.9% rise in like-for-like sales in the five weeks to 31 December following a successful Christmas TV advertising campaign.
The 190 strong chain said it delivered its best sales week to date during the period, beating its previous record in 2005 thanks to “a targeted promotional strategy” offering customers discounts on selected lines.
Total sales in the 13 weeks to 6 November increased by 3.5% to £310.8 million and EBITDA from continuing operations was £41.7 million.
Chief executive Darren Blackhurst said: “It is clear that Matalan is well positioned in this increasingly competitive market to offer customers the higher quality, lower cost value proposition they seek.”
Matalan said that higher cotton prices at the end of 2010 and early 2011 was affecting margins, and due to its buying cycle the recent fall in cotton prices will not be reflected in its margins until the second half of next year.
Regarding the outlook Blackhurst said: “We remain focused and cautious and recognise the need to maintain healthy cash levels and tight control of costs as we look after customers and exceed their expectations going forward.”
