Latest news with #Karl-HeinzHolland
Fibre2Fashion
23-06-2025
- Business
- Fibre2Fashion
UK's Matalan posts $75.04 mn profit rise in FY25, eyes expansion
British fashion and homeware retailer Matalan has reported an increase of 6 per cent year-over-year (YoY) in adjusted EBITDA to £56 million (~$75.04 million) for full fiscal 2025 (FY25) ended February 22, despite a 9 per cent YoY drop in total revenue to £985 million (~$1.25 billion). 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)
Yahoo
19-06-2025
- Business
- Yahoo
Matalan delivers FY25 EBITDA and gross margin growth
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. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion United
19-06-2025
- Business
- Fashion United
Matalan's EBITDA rises despite sales decline amidst challenging market
Matalan, the UK-based omnichannel fashion and homeware retailer, has reported a 9 percent dip in full-year sales to 985 million pounds. However the strategic emphasis on driving profitability resulted in a 6 percent year-on-year increase in EBITDA to 56 million pounds for the year ended February 22, 2025, with an 11 million pounds improvement in the latter half of the year. Gross margin improved 3 percent to 510 million pounds, while the company's loss before tax reached 67 million pounds. Matalan improves profitability Commenting on the full year trading update, Karl-Heinz Holland, executive chair, said: '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 £25m of funding secured from our core investors post-year end has now enabled us to start to accelerate our strategic plan.' '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 10 new stores and upgrade 30 existing locations in FY26,' Holland added. Matalan reveals cautious outlook However, against a more challenging UK consumer environment and an uncertain global macroeconomic backdrop, management's outlook for the remainder of the current financial year remains cautious. Looking ahead, Matalan's positive momentum from the fourth quarter has carried into the first quarter of FY26, with EBITDA for the last 12 months reaching 64 million pounds. Despite the tough operating environment, Karl-Heinz Holland asserts confidence in "the strength of the Matalan brand and the opportunities ahead." '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.'
