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Profit at retail chain Matalan dropped 44% to £25.8m during the 13 week period ending 29 August as the retailer reported lower revenues due to heavy discounting in a bid to clear stock.
Revenue declined 11.6% to £258m, down from £292m the previous year.
Net cash however, at the end of August came in at £162.3m.
The chain was forced to shutter 231 stores in the UK in March as Covid-19 lockdown measures began to sink in.
It reopened 15 shops in May and the remainder in September. Matalan offered heavy discounts in an attempt to clear the spring stock following the nationwide lockdown period, which it says is partly to blame for the decline in profits.
The increased restrictions on retail due to the growing second Covid-19 wave will inevitably affect business, said the firm’s executive chairman, Steve Johnson, who warned of the struggles still to come.
He said: “We will remain cautious as we trade through the autumn/winter season, although confident that Matalan has demonstrated its robustness since trading in stores resumed and that we have taken all appropriate actions to protect our business, colleagues and customers.
“The recent resurgence in Covid-19 and reinstatement of Government restrictions will without doubt create further pressure on the economy and consumer behaviour in the coming months.”
