Matalan losses widen to £67m

Matalan has revealed a loss-before-tax for the 52 weeks to 24 May 2025 of £67m, up from £60m the previous year, driven by “exceptional non-cash impacting items”.

Total revenue fell 9% to £985m, down from £1.08bn in 2024, although performance improved in the second half, particularly online. Gross margin rose 3% to £510m, aided by supply base rationalisation and buying efficiencies.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 6% year on year to £56m, with a strong fourth quarter delivering £16m, compared with £6m in the same period last year.

Matalan said it had made “good progress” on its strategic plan, supported by £25m in new funding. Product quality improvements helped gain market share in menswear and childrenswear, while it acknowledged more work was needed in womenswear and homeware.

The retailer introduced more considered ranges and heavier, natural fabrics to address customer preferences. It also refitted 12 stores during the year, with plans for 10 new or relocated sites and upgrades to 30 locations in the 2026 financial year.

Matalan said profitability gains in the fourth quarter continued into the first quarter of 2026, with trailing 12-month EBITDA reaching £64m.

Executive chair Karl-Heinz Holland said: “In the last year our focus has been on further driving the transformation of Matalan against a challenging consumer and wider economic backdrop. The additional £25m of funding secured from our core investors post-year end has now enabled us to start to accelerate our strategic plan.

“With a clear focus on maintaining profitability, we have delivered EBITDA growth. Our store investment plan is delivering results even better than we expected, and we’re making good headway on our plan to open 10 new stores and upgrade 30 existing locations in FY26.”

He added: “Our customers are central to everything we do and our renewed focus on ever sharper quality and value reflects this, and I want to thank all our colleagues who have worked so hard to ensure we are delivering every day.

“While we started the new financial year with positive momentum, we continue to operate in an increasingly competitive market and uncertain macroeconomic conditions. Against this backdrop, we remain mindful of the tough operating environment and know there is much more to do to complete our transformation.At the same time, we are confident in the strength of the Matalan brand and the opportunities ahead, and believe the business is well positioned to continue to transform and grow its profitability.”