Clothing retailer Matalan's sales lifted by overhaul

Lee Cooper jeans maker Matalan showed the benefits of a recent overhaul today after like-for-like sales resumed an upward path and profits steadied.

Chief executive John King, who has introduced greater marketing, store refits and a change in the mix of products, believed the figures for the 26 weeks to August 28 proved Matalan was now on a more stable footing.

He has been encouraged by a 4.5% rise in same-store sales – compared with a 6.7% fall a year earlier – while operating profits lifted 9% to £46m (€66.3m). At the bottom-line, Matalan halted a recent slide with profits at £41.7m (€60.1m), against £42.2m (€60.8m) a year earlier.

Mr King added: “Current trading is also encouraging, and we are in a solid position ahead of the important Christmas trading period.”

In the nine weeks to Saturday, Matalan said like-for-like sales rose 4.6% as lower prices helped attract more shoppers into the company’s stores.

Despite the progress, Matalan said its Lee Cooper jeans business continued to struggle with operating losses of £1.7m (€2.5m) over the half year. It remains in talks over the possible sale of the division, which has been in difficulty because of tough conditions in its key French market.