GlobalData
2 min read
UK fashion and homeware retailer Matalan has reported a 6% increase in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to £56m and a 3% improvement in gross margin to £510m ($689.4m) in the fiscal year 2025 (FY25).
Despite a 9% drop in total revenue to £985m, the company has focused on profitability over sales growth. This has seen improvement in the second half of the fiscal year, especially in the fourth quarter (Q4), with EBITDA rising by £11m.
Matalan has secured additional funding of £25m from existing core investors, which has enabled the acceleration of its transformation plan.
The company acknowledges that more work is needed to improve womenswear and homeware. Efforts to source quality fabrics and launch more considered ranges have been part of the strategy to meet key customer demands.
The company completed 12 store refits in FY25.
Matalan executive chair Karl-Heinz Holland stated: “With a clear focus on maintaining profitability, we have delivered EBITDA growth. Our store investment plan is delivering results even better than we expected, and we’re making good headway on our plan to open ten new stores and upgrade 30 existing locations in FY26.”
The company is also investing in its digital presence with the launch of an app and has made improvements to its Knowsley distribution centre for improved supply chain efficiency.
However, its management maintains a cautious outlook for the remainder of the financial year, given the “uncertain global macroeconomic backdrop” and “a more challenging UK consumer environment”.
Holland added: “While we started the new financial year with positive momentum, we continue to operate in an increasingly competitive market and uncertain macroeconomic conditions. Against this backdrop, we remain mindful of the tough operating environment and know there is much more to do to complete our transformation. At the same time, we are confident in the strength of the Matalan brand and the opportunities ahead, and believe the business is well positioned to continue to transform and grow its profitability.”
In early June 2025, the company announced the implementation of the VisualStore commerce platform, developed by Toshiba Global Commerce Solutions, for faster, smoother and connected shopping across multiple channels.
"Matalan delivers FY25 EBITDA and gross margin growth" was originally created and published by Retail Insight Network, a GlobalData owned brand.
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