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Thursday, 19 January 2012 |
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 The fashion and home ware company posted like-for-like sales in the five weeks to December 31 by 9.9%, up from 1.3% in the 13 weeks to November 26.The company said it delivered its best sales week to date during the period,
beating its previous record in 2005.
 Matalan published quarter revenues of £310.8m with like-for-like sales up 1.3 per cent. During that period, the retailer accounted to have its best weekly sales since 2005. The record was broken thanks to an aggressive TV advertising campaign. Chief executive Darren Blackhurst said: “It is clear that Matalan is well positioned in this increasingly competitive market to offer customers the higher quality, lower cost value proposition they seek.”
However, the privately-owned company warned about tough times to come, as that rising cotton prices at the end of 2010 and early 2011 were now putting pressure on margins, and due to its buying cycle the recent fall in cotton prices will not be reflected in its margins until the second half of next year. Looking ahead, Matalan added: "The outlook for the UK consumer continues to remain uncertain with increasing pressures on disposable incomes, declining confidence levels and the expectation of a tough January and February 2012."
“We remain focused and cautious and recognise the need to maintain healthy cash levels and tight control of costs as we look after customers and exceed their expectations going forward,” Blackhurst concluded.
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