Matalan narrows annual losses, boosts revenue amid strategic transformation

British retail giant Matalan has narrowed its annual losses and achieved a slight increase in total revenue for the full year, driven by its ongoing strategic transformation, improvements in its product ranges, and strong online performance.

For the 53 weeks ended 28 February 2026, total statutory revenues rose by 0.2 percent to 987 million pounds, up from 985 million pounds in the previous fiscal year. This growth was bolstered by a 10 percent increase in online sales and positive customer reception to core womenswear ranges, which helped the retailer gain volume market share.

Meanwhile, Matalan's loss before tax narrowed by 18 percent to 55 million pounds, down from 67 million pounds in the year prior. This bottom-line improvement was driven by tighter cost management and gross margin gains, which benefited from stronger product margins and reduced shipping costs, despite a discount-heavy UK retail market.

In a statement, Henrik Nordvall, who has helmed Matalan as CEO for just a few months, said: “We delivered strong EBITDA growth and improved gross margin in the period, despite a challenging and highly competitive retail environment, all while continuing to invest in the areas that are driving growth.”

He noted that a key driver of this progress was a "continued focus on delivering everyday style, quality and value for customers”, with positive responses seen towards its product offer and refreshed stores.

FY27 starts strongly as continued momentum expected

Looking forward, the company expects the momentum to continue into the 2027 fiscal year. In the first quarter, Matalan reported a revenue increase of 2 percent year-on-year, alongside market share gains in both volume and value.

Adjusted EBITDA for the quarter rose by 45 percent to 14.9 million pounds. The retailer plans to continue investing in its digital proposition, including the launch of a new mobile application later this year to support its omnichannel growth strategy.

Nordvall added: “While we remain mindful of the wider environment, we have started FY27 strongly, with positive sales growth and continued market share gains – particularly in womenswear.

“What gives us confidence is the scale of opportunity still ahead of us. With a large and loyal customer base, significant untapped omnichannel opportunity and clear evidence that our strategy is working, we believe the long-term growth opportunity for Matalan remains substantial.”