Value retailer Matalan has issued a profit warning after the warm summer resulted in poor sales of its autumn collection.
The privately owned discount clothing chain revised its full-year operating profit guidance down to between £90m and £95m from £108m to £112m.
The news comes amid an unsettled period for the retailer, which has been suffering from sales declines and appointed its seventh boss in 12 years in July. Jason Hargreaves, son of founder John Hargreaves, replaced Darren Blackhurst.
EBITDA jumped from £17.3m to £20.4m in the 14 weeks to August 31 while sales at Matalan increased £269.2m to £283.5m.
Jason Hargreaves said: “The business realised an improvement in performance in the second quarter as customers took advantage of our strong summer offer.
“However, the lateness of the summer heat-wave and Indian summer throughout September has tempered the start to autumn trading, the impact of which has now been fully reflected in our revised guidance for the year.
“Through the remainder of the season we will be investing in lower prices for customers to continue to provide style, quality and outstanding value.”
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