Warning on profits at fashion retailer
FASHION retailer Bonmarché has blamed an “extremely poor” month in September for plummeting sales.
It said that current like-for-like estimations for Q2 see sales drop 8%, as will sales in the second half.
Full year profit before tax is likely to fall within a range between £5m and £7m, said the business, lower than initially expected.
The Wakefield-based retailer struggled in July and August, but “unseasonably hot weather” had put a damper on autumn clothing range sales.
The only silver lining in this cloud, said the company, was that stores saw strong sales in residual summer stock – despite the “generally poor” summer trading months this year.
Bonmarché was entering the second half of the year with “considerable uncertainty” in market conditions, it said.
Helen Connolly, who has only in the last two months taken up her role as chief executive from long-term boss Beth Butterwick, said that she is currently formulating plans for the business.
In events similar to those at Asda, with new chief executive Sean Clarke overseeing another poor month of sales,
In its last trading statement, Wakefield-based Bonmarché said that poor weather conditions had been affecting trading over the summer months, and that they had assumed that it would be business as usual by the autumn months.
Ms Connolly, chief executive of Bonmarché and former director of buying womenswear at Asda’s George label, said: “I was attracted to Bonmarché by its potential to grow as a business serving the 50 plus women’s value clothing market.
“My early impressions of the business have underpinned this, and I am currently formulating my plans for the future. The direction of travel is right, but the effectiveness of execution needs to improve. My plans are therefore likely to focus on improving the clarity of the customer proposition and operational improvements in all channels rather than a major strategic repositioning.
“I have been encouraged by the enthusiasm and commitment of the Bonmarché colleagues, and am confident that despite the difficult conditions we are currently experiencing, the business will resume growth during FY18. I will provide a more comprehensive update in relation to my strategy in due course.”
