Bonmarché sees 4.5 percent drop in full year same-store sales

Updating on its performance for the 52 weeks to March 31, 2018, Bonmarché, said that, reflecting the good progress achieved during the financial year, the FY18 profit before tax will be in line with the board’s expectations. While total sales for the year declined 0.5 percent with store only like-for-like sales dropping 4.5 percent and 1.5 percent including online, online sales for the year improved 34.5 percent. In the fourth quarter, total sales decreased 6.2 percent, while online sales were up 31.2 percent. However store only like-for-like sales witnessed a fall of 11.1 percent and including online, a drop of 7.4 percent.

Commenting on the trading update, Helen Connolly, Chief Executive Officer of Bonmarché, said in a press statement: “As anticipated, trading conditions in the final quarter of our financial year remained challenging and, against this backdrop, I am pleased that we have delivered an increase in the FY18 profit before tax compared to last year. Whilst we expect the market to remain difficult, our focus will be on continuing to improve our proposition to customers.”

The company added that online sales maintained the strong growth seen throughout the financial year, against comparatives that became more difficult in the fourth quarter. Store sales performance was disappointing, reflecting the issues more widely reported in the clothing market.

Bonmarché further said that total sales for the year therefore declined slightly, but the gross margin percentage was resilient. The lower headline gross margin that had been anticipated due to adverse FX movements, was largely mitigated through tight stock control and improvements to the loyalty scheme, which led to lower discounting. There were also significant overhead cost savings, delivered through improved operational efficiency and reduced, but more effective, marketing expenditure.

As at March 31, 2018, Bonmarché traded from 325 stores and its online platform.

Picture:Facebook/Bonmarché