Despite a drop in sales, Matalan has claimed a year of increased profitability as the British retailer continues its corporate transformation, which aims to improve digital performance, invest in shops and polish its product.
Matalan’s revenue for the 52 weeks ending February 2025, was US $ 1,321 million, a 9% year-over-year decrease. Adjusted EBITDA, however, increased 6% to US $ 75 million. Among the notable improvements in the second half was a US $ 13 million improvement in Q4, which ended at US $ 21 million as opposed to US $ 8 million the previous year.
A 3% increase in gross margin to US $ 684 million was also aided by more thoughtful purchasing procedures. Due to unusual non-cash items, the firm reported a US $ 90 million loss before taxes for the entire year.
Menswear and childrenswear, two categories that have contributed to recent increases in market share, witnessed excellent operational performance for the company. There is still need for improvement in womenswear and home furnishings. Better fabrics and more carefully chosen product lines are the results of a renewed emphasis on value and quality.
With EBITDA for the 12 months ending 24th May 2025, hitting US $ 86 million, Matalan stated that the excellent trend from Q4 has continued into Q1 FY ’26. Given the persistent cost pressures, increased competition and macroeconomic uncertainty, the outlook is still cautious.
The retailer revealed earlier this month that it was investing more than US $ 33.53 million in its UK store portfolio. It is the first step in a multi-year plan to update and increase its physical presence.
