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Fashion retailer Bonmarché has reported a 11.1% drop in like-for-like sales over the Christmas trading period, ending 29 December 2018.
Total sales declined by 8.1% during the period, however the group recorded a 22.2% increase in online sales, although at a lower rate than in the first half of the year. Additionally, shares in the retailer halved in December from 81 pence to 47 pence after announcing it expects losses of £4m for the current financial year.
The group blamed the “uncertainty surrounding Brexit” as a significant factor affecting demand, and expected a like-for-like sales for Q3 to drop by 12%, and approximately 1% for Q4.
The company, which issued a profit warning in September, saw profits fall by 21% for the first half of the year, attributed to “weaker consumer sentiment” in a “challenging market”. At the time the retailer said it did not achieve the target it set for the first half of the year, but expected to meet the adjusted full-year guidance of underlying profit before tax of £5.5m.
CEO Helen Connolly said: “Clearly, in the short time since our last update, macro market conditions have not changed, but I am pleased that the sale stock is clearing well and that trading is in line with our revised expectations. In the short term, we continue to focus on ending the year with a clean stock position and ensuring that our balance sheet remains healthy.
“Looking forward, the board remains confident in Bonmarché’s prospects and strategy and we will continue to drive the implementation of our previously outlined plans, maintaining a particularly strong emphasis on increasing multi-channel sales.”
