Omnichannel fashion and homeware retailer Matalan has registered total revenue of £263.6 ($338.7m) in the first quarter of fiscal year (FY) 2024, down 8% from £286.5m in the same period of FY23.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) post-adoption of IFRS 16 narrowed to £26.1m in Q1 FY24 from £44.4m in the same quarter a year ago.
Its EBITDA margin for the 13 weeks ended 27 May 2023 was 9.9% against 15.5% in Q1 FY23.
In the five weeks to 1 July 2023, Matalan saw its revenue grow 5.5% to £122.5m and its EBITDA post-adoption of IFRS 16 rose to £33.6m.
The company’s EBITDA margin for this period was 27.4%.
For the full year of FY24, Matalan expects an EBITDA guidance range under IAS17 of £60m-£65m.
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Matalan operates through a network of 230 stores in the UK, an e-commerce platform and 48 overseas franchise stores.
Matalan chief executive Jo Whitfield said: “The business had a challenging first quarter with cost-of-living pressure resulting in depressed consumer spending in discretionary categories. Unseasonal weather delayed a refresh of wardrobes for early Spring, creating a tough start to the season.
“However, as the new leadership team came together and the initial changes we have made started to take effect and as the weather improved, we have been able through June to reduce the cumulative EBITDA gap to last year from £18.1m to £2.9m. We are also confident of strong year-on-year profit improvement across the remainder of the year.
“In addition to a challenging market backdrop, internal operational challenges created a gap to the market in the first quarter. We have two key areas of focus, those being driving our online channel and improving both product choice and the strength of our price position for customers.”