Matalan revenue falls 21.5% in Q3
Despite a switch to online channels the retailer has been repeatedly struck by ‘severe Covid-19 related disruption’
Register to get 1 more free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
Matalan, the out of town fashion and homeware retailer, has announced its year-on-year revenue plummeted 21.5% for the 13 weeks ended 28 November 2020.
The drop in sales from £311.7m to £244.8m came as a result of the “severe Covid-19 related disruption” that the November lockdown caused the firm.
Adjusted EBITDA for the quarter also fell from £59m to £54.1m as the retailer relied on the growth of its online channel and increased liquidity to maintain operation over all of its stores.
Steve Johnson, executive chairman at Matalan, said: “Today’s results reflect the severe Covid-19 related disruption to store trading throughout November as Government restrictions required us to close completely or trade only ‘essential’ ranges within stores.
“Whilst the business has suffered a Covid-19 driven reduction in store revenues during the quarter, the proactive steps taken have enabled a more resilient profit and liquidity performance.”
Since the period end, the firm was forced to close 62 of its stores again on 19 December, before a further 30 shut from 24 December.
These repeated closures have led to a fall in revenue for the five weeks leading up to 2 January of £15.1m (11.2%).
The latest national lockdown has also caused Johnson to “remain very cautious” about the upcoming months that will “undoubtedly continue to be a tough retail environment”.
