British fashion and homeware retailer Matalan has reported a strong trading performance in the third quarter (Q3) ended November 28, 2025, supported by like-for-like sales growth of 2 per cent and a continued focus on margin enhancement and operational efficiencies. Pre-IFRS16 EBITDA increased 38 per cent to £27 million (~$36.18 million), supported by improving sales momentum, robust digital growth, and continued progress in its business transformation programme.
Digital channels were a key contributor to performance during the quarter, with like-for-like online sales rose 11 per cent in Q3, while Black Friday delivered Matalan’s strongest-ever online sales day outside the COVID pandemic. The company attributed this to ongoing investment in its digital capabilities, with plans to launch a new native app later this year alongside a refreshed loyalty scheme to further strengthen customer engagement.
Store investment also continued to deliver results, with refreshed locations outperforming the wider estate by 12 per cent. Building on this momentum, Matalan plans to upgrade a further 40 stores in the next financial year as part of its wider strategy to enhance the in-store experience and support omnichannel growth, Matalan said in a press release.
Trading during the peak Christmas period remained resilient despite a challenging retail environment. Over the nine weeks to January 2, 2026, like-for-like sales increased by 1 per cent. Women’s outerwear and men’s formalwear and sportswear were standout categories, helping Matalan gain market share across both womenswear and menswear. The retailer said this reflects improvements in its product offer and a noticeable uplift in brand perception among consumers.
Overall, Matalan outperformed the wider market from October through December, delivering year-on-year sales growth ahead of peers. The company said its results highlight the positive impact of sustained investment across stores, digital platforms and the supply chain, alongside a continued emphasis on delivering everyday style, quality and value, added the release.
“Our business transformation continues to deliver tangible results, with another strong quarter of EBITDA performance, alongside a return to sales growth. This reflects our relentless focus on delivering better quality, style and value, underpinned by sustained investment in product, stores and digital,” said Karl-Heinz Holland, executive chair of Matalan. “This has enabled us to outperform the market, despite a challenging trading backdrop. Looking ahead, we look forward to welcoming our new CEO Henrik next month and remain confident in the business delivering sustainable profitable growth.”
Matalan is set to welcome Henrik Nordvall as its new chief executive officer on February 2, 2026, marking the next phase in its transformation journey as it seeks to build on recent gains and drive long-term profitable growth.
