Fashion and homeware retailer Matalan has reported a 4.9% increase in revenue for the 13 weeks ending 26 May 2018.
Total revenue increased by £15.5m to £265.9m, with the group pointing to its children’s ranges as the “highlight this season” in addition to strong performance across the board.
Jason Hargreaves, CEO of Matalan, said: “Our first quarter represents a strong set of results. Good stock management, flexibility in our operating model and agility in our customer contact strategy helped us outperform a volatile market. Thanks to the hard work of our colleagues we continue to deliver consistently for customers and can be pleased with our performance.
“We don’t expect the retail climate to improve in the short term and market conditions will remain difficult. Currency pressures on operating margins are ongoing. We are therefore cautious in our outlook but confident that our strategy is delivering for customers which positions us well.”
Competitor budget fashion retailer Primark also reported a 6% increase in sales for the 40 weeks to 23 June last week. Associated British Foods (ABF), which owns Primark, said growth was driven by increased retail selling space in the UK and abroad, and as a result of “better trading across the eurozone”.