• FY earnings up 29% to GBP186.5m
  • Revenues rose 8% to GBP1.1bn
  • Increasing investment in online business

UK fashion retailer Matalan has posted improved full-year profits despite what it called a challenging market.

The company said that revenues rose 8% to GBP1.1bn (US$1.7bn) for the 52 weeks ended 27 February, resulting in a 29% earnings increase to GBP186.5m.

Its gross margin was 49.2% last year, an increase from 47.8% in 2009.

During the year Matalan opened three new stores in locations in Northern Scotland, Manchester and Greater London, together with franchises in Abu Dhabi, Dubai and Jordan.

Alistair McGeorge, CEO of Matalan said: "This has been an exciting year for us delivering very strong sales growth in what remains a challenging market.

"We have benefited from our investment over the last three years in our product, our stores and our people.

"We remain convinced of the continuing relevance of Matalan’s offer to UK consumers and have re-commenced our store opening programme and increased our investment in our online business to reach out to new customers."