Matalan profits plummet 63%

Matalan has seen its profits fall more than 60% in its second quarter and the discount fashion chain does not expect trading conditions to improve in the short term. Matalan said trading was hit by a "difficult month" in June when rivals started discounting earlier.

The 212-store retailer's underlying profits fell by 63 per cent to £13.6m in the 13 weeks to 27 August, on revenue down by 1.7 per cent to £258.5m. Darren Blackhurst, Matalan's chief executive, said: "The challenging conditions faced in the first quarter continued into the second quarter. While we do not expect these conditions will change in the near future, Matalan continues to be a profitable, cash generative and robust business with growth opportunities."