Matalan reports drop in Q3 sales as lockdown takes toll
19 Jan 2021
Matalan has reported a drop in revenue for the third quarter of the year as lockdowns took their toll on the company’s in-store sales.
For the 13 weeks to 28 November 2020, total revenue at the omnichannel fashion and homeware retailer dropped 21.5 percent to 244.8 million pounds.
That drop reflected “the severe Covid-19 related disruption to store trading throughout November” as fresh government restrictions forced the company to only sell 'essential' ranges within stores.
EBITDA post adoption of IFRS16 dropped 8.3 percent to 54.1 million pounds.
Lockdown impacts Matalan’s Christmas trading
For the peak festive trading period, the 5 weeks to 2 January 2021, total UK revenue fell 11.2 percent to 119.2 million pounds. That was despite an 84 percent jump in online sales during the period.
Looking forward, executive chairman Steve Johnson said the company “remains cautious” as fresh lockdowns since Christmans have forced all its stores to shut once again.
“As such we remain very cautious about the months ahead and are working with our key stakeholders to manage the business accordingly, focussing on optimising online performance, cash preservation, working capital management, and minimising costs,” Johnson said.
“We have swiftly taken the necessary action to protect the business. Whilst we have furloughed the majority of our store teams, we continue to fulfil online demand from many of our stores and also provide our popular click and collect service, enabling safe and convenient access for our customers to essential clothing and homeware items for themselves and their families.”
Photo credit: Matalan, Facebook