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Matalan has narrowed its pre-tax losses to £55m following signs of success from its long-term turnaround plan, which continues to gain momentum, for the 53 weeks to 28 February 2026.
The reduction from a £67m loss in the previous year came as the fashion and homeware retailer increased its adjusted earnings before interest, taxes, depreciation and amortisation by 24% to £69m.
Total statutory revenue for the year rose by 0.2% to £987m, supported by a 10% growth in online sales.
The business increased its capital expenditure by 171% to £46m to fund store refurbishments, supply chain upgrades and technology projects.
Refreshed stores outperformed the rest of the estate by 12% and recorded a 10% increase in like-for-like sales.
Matalan also improved its gross margin by 6% to £538m through stronger product margins and lower shipping costs.
The company reduced its net leverage from 4.8 times to 4.3 times during the financial year, while more than 90% of its autumn, winter and spring ranges were priced at £30 or below.
The positive trading momentum continued into the first quarter of the current financial year, with revenue rising 2% year on year.
First-quarter adjusted earnings also increased 45% to £14.9m, alongside volume and value market share gains.
The retailer strengthened its executive team during the period with the appointment of Henrik Nordvall, who joined as CEO on 2 February 2026.
Nordvall said: “My first few months as CEO have reinforced exactly why I chose to join Matalan. We delivered strong EBITDA growth and improved gross margin in the period, despite a challenging and highly competitive retail environment, all while continuing to invest in the areas that are driving growth.
“A major driver of that progress has been our continued focus on delivering everyday style, quality and value for customers, and it is encouraging to see the positive response to improvements in our product offer, the strong performance of our refreshed stores and continued momentum online.”
He added: “While we remain mindful of the wider environment, we have started FY27 strongly, with positive sales growth and continued market share gains – particularly in womenswear. What gives us confidence is the scale of opportunity still ahead of us. With a large and loyal customer base, significant untapped omnichannel opportunity and clear evidence that our strategy is working, we believe the long-term growth opportunity for Matalan remains substantial.”
