Supply chain issues fail to disrupt Matalan's "strong" Q3
Despite the extra costs of dealing with supply issues “in challenging circumstances” Matalan pushed through to deliver a “strong" Q3 performance, the UK-based fashion and lifestyle retailer said.
Revenues jumped 19% year-on-year to £291.4 million for the quarter, which included the Christmas trading period. And for that important period, the five weeks to January 1, revenue increased 8% year-on-year to £130 million.
Although there was no breakdown of how well its online channel performed, it noted that digital investment over the past two years had paid off, with annual turnover now surpassing £200m.
“Our stores are very much complementary to a scaled-up online channel and together they provide over 11 million savvy customers with convenient and flexible access to our ranges”, it said.
The retailer’s pre-tax profits rose to £10.6 million from £1.7 million a year ago. Its pre-tax profits for the first three quarters totalled £11 million, reversing a hefty loss of £76.7 million for the same period in 2020.
Executive chairman Steve Johnson noted that product availability had suffered from delays allied to "heavy disruption" in the UK logistics and labour markets had created significant extra costs.
But at least stock turnaround “was quicker than ever once merchandise became available”, Johnson noted, highlighting that there was a positive customer reaction to its offer, with the womenswear range “performing particularly well”.
"I’m pleased with the way in which our business has responded in managing these challenges, demonstrating unprecedented levels of agility in making stock available to customers as quickly and efficiently as possible," added Johnson.
On its physical store offer, which includes 229 retail units in the UK as well as 52 overseas franchises, Johnson also said: “We will continue to invest in our store portfolio in the years ahead, further enhancing the store environment and proposition to capitalise on what we see as an opportunity to add further range breadth and choice for customers in relevant and adjacent categories.”
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