UK's Matalan posts $75.04 mn profit rise in FY25, eyes expansion
The gross margin of the company for FY25 improved by 3 per cent to £510 million, supported by supply base rationalisation and enhanced buying. The loss before tax widened to £67 million, largely due to non-cash exceptional items. It saw a significant uptick in profitability in the second half (H2), particularly in Q4, where EBITDA surged to £16 million from £6 million a year earlier.
Operationally, Matalan made strides in menswear and childrenswear, achieving market share gains, while focusing on product quality, sourcing improvements, and store refits—12 of which have outperformed expectations. With £25 million in new funding, the company plans to open 10 new stores and revamp 30 more in FY26, along with launching a new app to bolster digital capabilities.
Matalan has reported a rise of 6 per cent YoY in adjusted EBITDA to £56 million (~$75.04 million) in FY25 despite a 9 per cent drop in revenue to £985 million. Improved gross margin and Q4 gains boosted profitability. Backed by £25 million in new funding, Matalan plans store expansions and a new app. While momentum continued into FY26, the outlook remains cautious amid economic uncertainties.
The appointment of Sarah Welsh as chief product, brand and customer officer reinforces Matalan's commitment to placing customer-focused quality at the heart of its offering. While profitability momentum carried into Q1 FY26—driving 12-month EBITDA to £64 million—the company remained cautious given persistent UK consumer pressures and global macroeconomic uncertainty, Matalan said in a press release.
'In the last year our focus has been on further driving the transformation of Matalan against a challenging consumer and wider economic backdrop. The additional £25 million of funding secured from our core investors post-year end has now enabled us to start to accelerate our strategic plan,' said Karl-Heinz Holland, executive chair. '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 are making good headway on our plan to open 10 new stores and upgrade 30 existing locations in FY26.'
'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,' added Holland. '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.'
Fibre2Fashion News Desk (SG)
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