For the 53 weeks ended 28 February 2026, Matalan posted a pre-tax loss of £55m ($73m), marking an improvement of 18% from the £67m loss reported in FY25.
The company registered a 24% increase in earnings before interest, taxes, depreciation, and amortisation (EBITDA) year-on-year, which rose to £69m, as higher sales volumes and improved margin rates partially offset continued pressures from a highly promotional UK retail landscape.
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Matalan also recorded a 0.2% increase in total annual revenue to £987m, up 0.2% from £985m in the previous year. This was attributed to a 10% rise in online sales, supported by continued investment in its omnichannel strategy.
Supported by stronger product margins and reduced shipping costs, the retailer reported ongoing improvement in gross margin, which increased by 6% to 538 basis points from 510.
Matalan expanded its investment programme during the year, raising capital expenditure by 171% to £46m. This spending went towards refreshing stores, upgrading supply chain infrastructure, and advancing technology projects.
Stores that underwent refits outperformed the rest of the estate by 12% and achieved a 10% rise in like-for-like sales.
As part of its ongoing transformation, Matalan has made several leadership changes. Henrik Nordvall, a former H&M executive, became the chief executive officer in February 2026.
Commenting on the results, Nordvall 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. A major driver of that progress has been our continued focus on delivering everyday style, quality and value for customers, and it is encouraging to see the positive response to improvements in our product offer, the strong performance of our refreshed stores and continued momentum online.”
Looking ahead, the company noted that the improvements made in FY26 have continued into FY27 and said it remains “focused on delivering against our strategic priorities”.
In Q1 2027, Matalan achieved 2% revenue growth year-on-year, market share gains in both volume and value, and a 45% increase in adjusted EBITDA to £14.9m.
“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,” Nordvall added.
“My first few months as CEO have reinforced exactly why I chose to join Matalan. This is a business with a much-loved brand, loyal customers and significant potential, and I have been encouraged by the progress already underway.”
