×
51 770
Fashion Jobs
ADIDAS
Senior Manager Buying (Concept Stores)
Permanent · Portland
NEW BALANCE
Loss Prevention Officer (Day Shift)
Permanent · Skowhegan
L'OREAL GROUP
Mgr/sr Manager-Demand Planner
Permanent · Newport Beach
L'OREAL GROUP
Kiehl's Since 1851 - Director of Ecommerce
Permanent · New York
L'OREAL GROUP
Salon Business Partner (Saloncentric) - Troy, mi
Permanent · Troy
ABERCROMBIE AND FITCH CO.
Asset Protection Investigator
Permanent · Concord
OLD NAVY
Asset Protection Lead - Outlts @ Little Rock
Permanent · Little Rock
OLD NAVY
Assistant General Manager, Merchandising - Northcross
Permanent · Huntersville
OLD NAVY
External Asset Protection Lead - Franklin Park
Permanent · Toledo
OLD NAVY
General Manager - Four Flaggs
Permanent · Niles
OLD NAVY
Assistant General Manager, Merchandising - Crossings of Decatur
Permanent · Decatur
OLD NAVY
Assistant General Manager - Festival Mkt@Dogwood
Permanent · Flowood
OLD NAVY
General Manager - Barrow Crossing
Permanent · Bethlehem
OLD NAVY
Asset Protection Service Representative -Sports Arena Plaza
Permanent · San Diego
OLD NAVY
Buyer, Girl's, Outlet
Permanent · San Francisco
OLD NAVY
Asset Protection Agent - Fulton Street
Permanent · New York
OLD NAVY
General Manager - Franklin Park
Permanent · Spokane
OLD NAVY
Assistant General Manager, Merchandising - Brickyard Square (New Store)
Permanent · Epping
OLD NAVY
Assistant General Manager - Eagan Promenade
Permanent · Eagan
OLD NAVY
General Manager - Conyers Crossroads
Permanent · Conyers
OLD NAVY
Asset Protection Manager - Utah
Permanent · Salt Lake City
OLD NAVY
Assistant General Manager, Merchandising - Bradford Plaza
Permanent · Stillwater
Published
Jul 21, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Matalan has tough Q1, swings to loss

Published
Jul 21, 2020

The first quarter of its financial year wasn't a good one for Matalan with its revenue plummeting by over 70% as Covid-19 devastated its trading.


Matalan


In the 13 weeks up to May 30, revenue actually fell as much as 72%, hitting a low of £75.3 million. And that meant gross profit was down 163.2% at a loss of £23.7 million, while operating profit before exceptional items fell by as much as £59.7 million to a loss of £37.4 million. The final loss for the period was £53.8 million, much worse than a profit of £1 million in the previous year’s Q1.

The company’s cash reserves were also significantly lower, having fallen from £71.2 million down to £40.9 million, although the latter amount is a much better figure than many companies have found themselves with at present.

CEO Jason Hargreaves said the scale of revenue lost from its closed stores could not be offset by its smaller online channel, even though the webstore continued to trade throughout the quarter.

The firm, which was able to start reopening from May 18 because of the homewares products that it sells, said that its larger format and out-of-town locations have been performing strongly since the reopening began.

Analysts said the figures clearly pointed to the need to boost the company’s online presence further.

GlobalData’s Sofie Willmott said: “Matalan’s online performance has ramped up in recent years with FY2019/20 online sales rising 24% and digital channels accounting for a growing proportion of total sales. 

“However, other non-food players (such as Next and John Lewis & Partners) that have prioritised a best-in-class online experience over a long period, driving high online penetration, have been able to rely on their digital channels much more so than Matalan.”

But she recognised that the simple fact of having a webstore helped it pick up business that might normally have gone to rivals such as Primark.

“By at least having an online proposition, Matalan has been able to generate some revenue, unlike value rival Primark, which was completely cut off for three months owing to its lack of transactional website,” she said. “Shoppers who would have turned to Primark as their first port of call normally, may have instead shopped online at Matalan for urgent purchases, such as childrenswear.”

Copyright © 2021 FashionNetwork.com All rights reserved.