Matalan profits hit by halving EBITDA
Disappointing results recorded by Matalan in its full financial year to 27 February 2016.
The retailer's total sales fell by 3% from £1.09bn to £1.06bn year-on-year. Further, its EBITDA nearly halved by 44% from £100.3m to £56.2m as a result of warehouse issues.
“In line with the update provided in January, the full-year results issued today reflect the scale of the operational challenges encountered with last year’s warehouse transition" said Matalan Managing Director Jason Hargreaves.
“As a consequence, the overall proposition delivered to customers, both in stores and online, was severely challenged and margins were significantly eroded.”
“Having faced into the problem, we closed the year with clean stocks and are well positioned to continue to improve our mix of full-price sales and margin. While the market remains challenging and volatile, we are clear and focused on our recovery plan and cautious in our planning” Hargreaves added.
The Managing Director concluded that the warehouse has now recovered and store availability is back to normal. The retailer will now work on improving its ecommerce platform and delivery options.