Matalan said like-for-like sales were up 3% for the 13 weeks to May 29 and it is cautiously optimistic about the rest of the year.

Revenue climbed 4.4% to £277.4m during the period, with like-for-like sales up 9.5% from two years before. EBITDA rose 1.7% to £41.4m. Operating profit before exceptionals grew 2.5% to £32.6m.

Matalan said it had continued to grow its online sales during the quarter, and three new stores which opened last year had contributed to the sales growth. Six further stores are expected to open this financial year, starting in the next quarter.

Alistair McGeorge, chief executive of Matalan, said: “The group has again delivered a satisfactory performance in the first quarter against a backdrop of strong growth in Q1 last year and fiercely competitive market. Our new store opening programme continues to progress on plan.”

Matalan said the start of the financial year had been satisfactory but it remained cautiously optimistic for the rest of the year. In a statement, it said: “We continue to believe that our offer remains relevant to consumers and that we are well placed to continue to grow despite the challenging environment.”