‘Challenging market’ sees Bonmarché profits fall
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Bonmarché has seen its profits fall by 21% for the first half of the year, attributed to “weaker consumer sentiment” in a “challenging market”.
The fashion retailer reported for the period ending 29 September underlying profit before tax was £3.3m, almost £1m lower when compared with the same period the previous year. Revenues were also reported to be flat compared to the same period at £97.9m.
In-store like-for-like sales dropped 4% year-on-year,however online sales increased by 29% and now makes up 12% of total sales. Bonmarché said the growth was driven by offering customers a broader range of product and more choice in sizes, and an increase in the take-up of its in-store ordering.
The company, which issued a profit warning in September, said it did not achieve the target it set for the first half of the year, however it expects to meet the adjusted full-year guidance of underlying profit before tax of £5.5m.
Helen Connolly, chief executive of Bonmarché, said: “Whilst store trading has been impacted by the general weaker consumer sentiment and footfall seen across the market, we have continued to improve our proposition, particularly our digital capabilities and with a broader, modernised product offer, which is reflected in our strong online performance.
“We remain focussed on exploiting the opportunity afforded by the increasing demand for online shopping, and are encouraged by customers’ responses to new ranges such as denim, leisurewear and resortwear. Providing that sales during the key Black Friday through to Christmas trading period meet expectations, the board maintains the guidance published in September, being that the underlying PBT for the Group for FY19 will be £5.5m.”
She added the health and fundamentals of the business “remain strong” and the board remains “confident” in the strategy and in Bonmarché’s long-term prospects. The Bonmarché board announced an interim dividend of 2.5p per ordinary share, in line with last year’s interim dividend.
