Bonmarché reports 5.5 decline in Q3 sales

Bonmarché has announced that sales for the 13 weeks ended December 30, 2017 decreased by 5.5 percent against the corresponding period in FY17. Store LFL sales also decreased by 9.7 percent but online sales increased by 28.5 percent. Sales for the 39 weeks, increased by 0.9 percent; store LFL sales decreased by 2.8 percent, while online sales increased by 35.5 percent. The company has confirmed that the board’s profit expectation for the year remains unchanged.

Commenting on the trading update, Helen Connolly, Chief Executive Officer of Bonmarché, said in a media release: “The clothing market became more challenging during this quarter, especially on the high street; consequently our store LFL was disappointing. There remains uncertainty as to how trading conditions will evolve as we enter our final quarter. Looking further ahead, whilst we expect the market to remain difficult, we have a number of self help initiatives in progress or planned for FY19, which are expected to deliver profitable like for like sales growth in stores, and the continuation of strong sales growth online.”

Anticipating the continuation of difficult market conditions during the third quarter, the company has adjusted its stock purchasing plans, and therefore the level of discounting was reduced compared to last year, resulting in a slight improvement in the gross margin percentage. As at December 30, 2017, Bonmarché traded from 324 stores and its online platform.

Picture:Bonmarché website