WOMEN’S clothing retailer Bonmarché has issued a profit warning at the same time as its chief executive Beth Butterwick announces she is to move to Karen Millen.
Just three weeks ago, the Wakefield-based retailer said its expectations for the financial year to March 2016 would be unchanged “provided trading conditions normalised”.
“Trading conditions during December, particularly since ‘Black Friday’ on 27 November, have been very challenging, and have not normalised,” the company said in a statement to the stock market.
“The board’s view is that these trading conditions are likely to continue for the remainder of the winter season and it has therefore revised its profit expectations for the current financial year.”
It is forecasting pre-tax profits will be within the range of £10.5m-£12.0m. In its 2015 financial year, it generated pre-tax profits of £12.4m on sales of £178.6m.
The departure of Ms Butterwick after four years will be a blow for the retailer, whose chairman John Coleman paid tribute to her “sense of energy and purpose”.
He said: “She has led the business through a transformative period, through the acquisition by an affiliate of Sun Capital Partners in 2012, the IPO on AIM in 2013, and most recently the company’s transition to the London Stock Exchange’s Main Market as one of the UK’s largest women’s value retailers.
“Beth has imbued Bonmarché with a sense of energy and purpose, and today the business is well-placed for long-term success, with a robust balance sheet, strong management, and a carefully formulated growth strategy.”
Ms Butterwick will remain with Bonmarché until her successor is appointed, and the company has begun its search for a replacement.
The Wakefield-based retailer has 292 stores, of which 265 are standalone Bonmarché shops. The remaining 27 outlets are concessions, including 17 in garden centres.
