Despite challenging trading conditions, a “transforming” Matalan said Tuesday it’s seen “significant improvement” in the fashion and lifestyle retailer’s underlying profitability for the full year ended February 24.

 
Although both total and like-for-like revenues for the period dipped 6% (to £1.08 billion and £1.05 billion, respectively), it was a 92% surge in adjusted EBITDA (to £53 million) that the retailer focused on, citing improved gross margin and operational efficiencies.
 
In fact, gross margin rose 8%, due to “better buying strategies, a value creation programme, enhanced product margins, and reduced discounting”.

And although its pre-tax loss still hit £60 million, that’s a big improvement on a year-ago’s £106 million loss.
 
Another plus was that its full-price sales mix increased to 70%, up four percentage points from the previous year.
 
Supported by “good early operational progress” Matalan cited success in its “clear focus on growing full-price sales and tight cost control” in the period.
 
In a busy year, the retailer appointed a new executive team, including Former Boden director of product management and experience David Seeby who became became director of online; plus former Co-op director of strategic planning and solutions John O’Driscoll becoming director of strategy. 
 
There was also £35 million invested in its Q4 TV-based value campaign;  as well as “decisive actions” taken to improve and strengthen online sales; the opening of two new stores in Portsmouth and Crewe; and the introduction of 35 new third-party brands and extended size ranges online.
CEO Jo Whitfield said: “In the last year we have kickstarted the transformation of Matalan against a very challenging backdrop, resetting the foundations of the business.
 
“With a new leadership team in place, we have put the customer back at the heart of Matalan to make sure we become top of their list of go-to value retailers.”
 
Whitfield added: “Looking ahead, we are determined to deliver better value, more choice and improved style for all our customers. It is still early days in our transformation, and while we have much more to do, with challenges ahead, we are pleased that the actions we have already taken are having an impact as we build a stronger, more modern Matalan.”