Matalan posts slow growth, facing challenges from weak pound and volatile markets
Matalan grew revenues by one per cent in its second quarter, while full price sales increased 3.3 per cent as the discount retailer faced challenges from a weak pound, and a “volatile and challenging market.”
Its latest results show Matalan boosted revenue to £262.4m, up £2.5m year on year.
Online growth was healthier, increasing 25 per cent in the quarter.
The company has continued to invest in its refurbishment programme, completing 73 stores out of its 227 in the UK.
It also has 30 overseas franchise stores.
The chain expects challenges from a weak pound to increase, having already caused "significant" pressure in the first half of 2018.
Chief executive Jason Hargreaves said: “This pressure increases through the remainder of the year and we don’t expect the difficult market conditions or consumer confidence to improve in the short term.
“However, we remain confident in our strategy, focused on execution and believe this will continue to drive outperformance to the market.”
Matalan was taken private in 2006 after difficulties on the stock market.
The Hargreaves family tried to re-float the company in 2009, but was forced to abandon its plans after investors rejected a reported £1.5bn valuation.