Matalan has posted a jump in second-quarter profits as surging full price sales and the performance of revamped stores boosted its bottom line.
The fashion and homewares business said EBITDA rocketed 47.4% to £22.7m in the 13 weeks to August 26.
Matalan’s total sales increased to £259.9m during the period from £245.5m, driven by a 19.6% spike in full price sales.
The retailer refitted 24 of its 227 stores during the quarter. It said the revamped shops now feature “extended ranges and greater choice” in a “modernised shopping environment”.
Matalan added that the stores were “performing very well” and said it would continue to invest in refreshing shops across its estate.
Although it did not break out separate figures for its online business, Matalan said its new ecommerce platform had “accelerated” its online growth, which it described as “a key customer acquisition route” for the business.
Matalan’s chief executive Jason Hargreaves hailed its “outstanding value” offer, which he said “really resonated with customers” against an uncertain political and economic backdrop.
Hargreaves said: “The full priced sales mix has increased significantly and we are buying and trading at stronger margins. Our operational execution and efficiency has been disciplined.
“As a result, we have significantly shifted our operating margins and driven a strong performing core business.”
Hargreaves added: “As we enter the second half of the year we are pleased with how the business is progressing and have seen a good early reaction to the autumn ranges as well as launching our new lighting offer.
“Our focus remains on delivering outstanding product and value whilst improving the journey for customers. We believe this will position us well in what continues to be a challenging retail environment.”