Online sales surge 27% at Bonmarché

Retailer Bonmarché has seen a 27% upsurge in online sales but a 1.2% decline in store sales during the first quarter of its current financial year.

The Wakefield-headquartered listed firm this morning reported on the 13 week period ended 30 June, which saw overall sales, including online and in-store, grow 2.7% compared to the same period last year.   

Online sales grew by 27.3% and store only like for like sales declined by 1.2%.  Bonmarché traded from 323 stores and online.

Helen Connolly, chief executive of Bonmarché, said: “I am pleased with the improvement in trading in stores compared to the second half of FY18 and in the continued momentum of our online sales, particularly against strong prior year comparatives.

“The improved sales performance during the first quarter, achieved in a clothing market which, whilst helped to some extent by more seasonal weather, remains challenging, underpins our confidence in the strategy, and the Board’s expectations for the full year remain unchanged.”

The group also announced adjustments to its dividend policy, lowering the range of its progressive dividends from between 2.5x and 3x earnings to 2x and 2.5x. 

Bonmarché added: “The Board’s intention is that attainment of a cover within this range will be accomplished over a period of time, and that assuming profits grow, future dividends will be increased at a rate which simultaneously increases the dividend cover.”