• Matalan posts £15.4m EBITDA in its second quarter, up from £2.3m the year before
  • Total sales dip 6% to £245.5m in the 13 weeks to August 27
  • Full-price sales increase 3.9%

Discount fashion retailer Matalan has unveiled soaring profits as its EBITDA rockets 570% to £15.4m in its second quarter.

However, total sales came in at £245.5m for the 13 weeks to August 27, which is 6% lower than the same period last year.

But Matalan’s full-price sales fared better, growing 3.9% in the period. The retailer did not disclose a like-for-like sales figure.

The out-of-town retailer said it had been focusing on delivering “greater co-ordination, improved availability and full-price sales conversion” and hailed “solid progress” for the quarter.

Matalan managing director Jason Hargreaves said: “This served our customers well, and we delivered an effective exit from the summer ranges in July.”

Matalan’s EBITDA decreased 44% to £56.2m in its last full financial year, after its customer proposition was “severely challenged” by warehouse issues. And Lloyds Banking Group placed Matalan into special measures for struggling businesses in February after sales plummeted over Christmas.

Hargreaves said that Matalan was a “trusted destination” in uncertain times for consumers.

And, looking ahead, he added: “We remain measured and cautious in our outlook, focused on continuing to progress our proposition.”

Earlier this month, Matalan opened its first standalone homewares store in Yorkshire, to showcase previously online-only furniture ranges.