Matalan - comment

If Matalan can reach that guidance, investors will do well, even if the smaller tranches need extension beforehand. The company has lifted 2026/27 guidance well above our expectations, primarily on price changes, but also on a more aggressive (risky?) commercial stance, including more readily available stock earlier in the season, as well as better intake prices from a more concentrated supplier base. The increase comes in spite of 2026/27 counting only 52 weeks, down from 53 weeks this year. As flagged on the previous call, management are (strongly) considering taking up additional credit to fund the WC and an accelerated CapEx schedule that includes expanding the store base by a whopping 5% next year and refurbishing another 20%.