Profits on track at Bonmarché despite sales slump

Fashion retailer Bonmarché has experienced more difficult trading conditions.

Like-for-like store sales fell by 4.3% in the 52 weeks to April 1.

However an upturn in the most recent quarter saw online sales rise by 15.2% and total sales rise 2.7%.

In an update this morning, the Wakefield retailer said it expected that pre-tax profits for the 53 week period ended 1 April 2017 would be slightly above £6m. The company issued a profit warning last September, and settled on profits between £5m and £7m following an “extremely poor” period.

Helen Connolly, chief executive officer of Bonmarche said: “As anticipated, trading conditions post-Christmas continued to be challenging, but this was accounted for when we issued the revised profit guidance last September, and therefore the final result for the year is in line with our expectations.

“Store like-for like sales were negative in January but stronger during February and March, and we also saw the resumption of growth in online sales following improvements made to our online offering.

“Whilst we expect the apparel market to remain challenging during the coming financial year, we are actively taking measures to improve our proposition to customers.

“We remain confident that Bonmarché remains unique in its ability to serve the needs of its target market and that the successful implementation of our plan will allow us to deliver growth in FY18, despite the challenging market.”