Bonmarché issues profit warning after fall in September sales

Bonmarché has said that trading in September has been extremely poor, largely as a consequence of the unseasonably hot weather which did not favour sales of its new autumn ranges. The company currently estimates that the store like-for-like sales result for Q2 and the first half will be approximately down 8 percent.

Commenting on the update, Helen Connolly, Chief Executive said, “I was attracted to Bonmarché by its potential to grow as a business serving the 50 plus women’s value clothing market. My early impressions of the business have underpinned this, and I am currently formulating my plans for the future. I am confident that despite the difficult conditions we are currently experiencing, the business will resume growth during FY18.”

Outlook for the remainder of FY17

Approaching the beginning of the second half of the year facing considerable uncertainty, the Board’s view is that in the light of September’s result, and its generally less optimistic view of market conditions, it is appropriate to lower the profit expectation for the second half of the year. Combining the effect of September’s trading with a more cautious forecast for the second half of the year, the Board’s view is that the company’s full year profit before tax is likely to fall within a range between 5 million pounds (6.4 million dollars) and 7 million pounds (9 million dollars).

The board also proposes to announce an interim dividend of 2.5 pence per share, a similar level to that paid in respect of the first half of FY16, and currently expects to announce a final dividend of 4.6 pence per share.

Picture:Bonmarché