Bonmarché reports fall in sales and profit

Total revenue at Bonmarché for the 26 week period ended September 24, 2016 were 93.1 million pounds (114 million dollars) against 97 million pounds (119 million dollars) reported in the first half of 2016. Like-for-like sales declined 8.6 percent, while online sales were down 1.1 percent but increased by 2.3 percent in the second quarter. The company has announced interim dividend of 2.5 pence (0.03 dollar) per share.

Commenting on the trading, Helen Connolly, Chief Executive of Bonmarché, said in a company statement, “I believe that Bonmarché has significant potential to grow as a retailer serving the 50 plus women’s value clothing market, a belief that has strengthened with my continued exposure to the business. I remain confident that despite the difficult trading conditions, the business will resume growth during FY18.”

The company said despite discounting, product gross margin improved 30bps, while profit before tax was 2 million pounds (2.4 million dollars) or 2.5 million pounds (3 million dollars) on a pre-exceptional basis compared to 5.4 million pounds (6.6 million dollars) or 6.4 million pounds (7.8 million dollars) on a pre-exceptional basis in the same period last fiscal. Basic EPS was 3.1p (0.04 dollar) or 4.2p (0.05 dollar) on a pre-exceptional basis against 8.4p (0.10 dollar) or 10.5p (0.13 dollar) on a pre-exceptional basis, last year. Bonmarché opened 12 new stores and relocated three during the period.

Picture:Bonmarché