Listed retailer issues further profit warning
Womenswear retailer Bonmarché has issued a profit warning as losses are expected to hit £5m to £6m for the year.
The Wakefield-headquartered firm this morning issued a trading update in which it said sales during the third quarter of the financial year were “below initial expectations.”
Bonmarché, which reported poor Christmas trading results, previously anticipated an underlying loss of up to £4m.
The retailer said it had seen sales slightly pick up during January and February after attempting to clear the residual autumn/winter stock, which is now 40% lower than at this time last year.
However, trading since the beginning of March had been “significantly weaker,” reversing sales gains made in the previous months., said Bonmarche. As a result, the retailer now believes underlying losses will be between £5m and £6m.
Bonmarché noted that the recent downturn in trading was a consequence of the demand for transitional ranges, between winter and spring, having been “satisfied” during January and February.
The retailer’s expectation for the next financial year remains unchanged.