British fashion retailer Matalan reports £286.5 mn revenue in Q1 FY23

Matalan’s gross profit as a percentage of revenue decreased to 11.3 per cent in Q1 FY23 from 13.6 per cent in Q1 FY22. Its cost of sales increased to £254.1 million and operating profit pre-exceptional items increased to £17.0 million in Q1, the company said in its financial statement.

The loss in this period was £7.0 million compared to £9.3 million in Q1 FY22. The company’s administrative expenses (including exceptional items) increased to £15.4 million.

Commenting on performance Steve Johnson, executive chairman of Matalan, said: “Our strong sales performance for the first quarter reflects the extent to which our outstanding value continues to appeal to our extremely savvy customers. Sales grew not only when compared to last year, but also against pre-pandemic levels. Whilst not immune from the negative market factors facing the sector including weak customer demand, sub-optimal stock levels, and global inflation pressuring margins, Matalan is well positioned to weather these conditions given our reputation not only for great prices, but also for enduring quality, extensive choice, and fantastic design.

“Our top-line performance shows we are landing great product and customers trust us to give them the value they need now more than ever. We will continue to play to these strengths whilst progressing our strategy into the medium term. As always, I am extremely grateful to our colleagues, suppliers, and partners who continue to work incredibly hard, to serve and deliver for our customers.”

Fibre2Fashion News Desk (KD)