Matalan narrows losses as transformation gathers pace

The fashion retailer improved its profitability, with adjusted EBITDA up 24% to £69m in the year to February 28, 2026.

Pre-tax losses fell 18% to £55m, which it attributed to stronger product margins and reduced shipping costs.

Sales remained flat during the period, edging up 0.2% to £987m. Online revenues rose 10% year on year due to increased investment in the omnichannel proposition.

The retailer reported a strong customer response to improvements in product, particularly in core womenswear ranges. Over 90% of its AW25 and SS26 ranges are priced at £30 or below, it added.

Investment into the business topped £47m, up 171% year on year, which was spent on Matalan’s store refresh programme, supply chain upgrades and technology projects.

The retailer reported its upgraded stores were outperforming the wider estate by 12% in the year post-refresh and delivering a like-for-like increase of 10%.

Matalan chief executive Henrik Nordvall, who joined the business in February, said: “My first few months as CEO have reinforced exactly why I chose to join Matalan.

“This is a business with a much-loved brand, loyal customers and significant potential, and I have been encouraged by the progress already underway. I have also been struck by the passion our colleagues have for the Matalan brand and the belief they have in its future.

“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.”

Nordvall added that the business had started FY27 “strongly”, reporting positive sales growth and continued market share gains.