Matalan unveiled an uptick in festive profits and sales driven by the success of its online division.

The value fashion and home retailer said sales jumped 7.3% to £142.3m year on year in the four pivotal trading weeks of December.

EBITDA grew 15.5% to £22.3m, driven by a 24.7% online sales surge.

Meanwhile, store sales grew 6.3% during the period.

Third-quarter trading

In the 18 weeks to November 25, the retailer said full-price sales grew 2.6%.

However, total sales – including discounted items – declined 1.9% year on year to £293.8m.

EBITDA came in at £44.9m, up 28% during the period.

Volatile market

Matalan chief executive Jason Hargreaves cited a “volatile autumn market” as the reason for Matalan’s mixed performance.

As non-food retailers grapple with declining sales, Matalan has been working to reposition its offer.

The business is in the midst of a store refurbishment programme. It also plans to further enhance its online operation.

Hargreaves said the retailer’s performance was demonstrative of a consumer preference for value.

He said: “In the run-up to Christmas, savvy customers cut through the growing promotional noise in the market and seek out genuine value.

“Our offer is well positioned to respond to this, outperforming the market both in-store and online.”