Matalan revenue falls 21.5% in Q3
Despite a switch to online channels the retailer has been repeatedly struck by ‘severe Covid-19 related disruption’
Matalan, the out of town fashion and homeware retailer, has announced its year-on-year revenue plummeted 21.5% for the 13 weeks ended 28 November 2020.
The drop in sales from £311.7m to £244.8m came as a result of the “severe Covid-19 related disruption” that the November lockdown caused the firm.
Adjusted EBITDA for the quarter also fell from £59m to £54.1m as the retailer relied on the growth of its online channel and increased liquidity to maintain operation over all of its stores.
Steve Johnson, executive chairman at Matalan, said: “Today’s results reflect the severe Covid-19 related disruption to store trading throughout November as Government restrictions required us to close completely or trade only ‘essential’ ranges within stores.
“Whilst the business has suffered a Covid-19 driven reduction in store revenues during the quarter, the proactive steps taken have enabled a more resilient profit and liquidity performance.”
Since the period end, the firm was forced to close 62 of its stores again on 19 December, before a further 30 shut from 24 December.
These repeated closures have led to a fall in revenue for the five weeks leading up to 2 January of £15.1m (11.2%).
The latest national lockdown has also caused Johnson to “remain very cautious” about the upcoming months that will “undoubtedly continue to be a tough retail environment”.
