Bonmarche third-quarter sales up, reiterates FY profit expectations

Clothing retailer Bonmarche reiterated its full-year profit expectations on Friday as it reported a rise in third-quarter sales.

In the 13 weeks to 24 December, sales were up 3.3% against the corresponding period a year ago, with store like-for-like sales up 0.8%. Sales for the 39 weeks to 24 December fell 1.3%, with store LFL sales down 5.3%.

The company said a less promotional stance was taken throughout the quarter and although this impacted overall sales volumes, it resulted in a stronger gross margin performance, with product gross margin in the quarter 2.2% higher than in last year's corresponding period.

The company pointed out that its winter sale began on Boxing Day, rather than before Christmas, as it had done for several years.

Bonmarche said its financial position remains sound and expectations for the full year are unchanged, with pre-exceptional pre-tax profit likely to fall within a range of £5m and £7m.

Chief executive Hellen Connolly said: “Given the backdrop of the current trading environment, our third quarter store sales were satisfactory, particularly in light of the business still being in the early stages of its turnaround. The online performance was poor, and this continues to be a key area of focus.

“Customers have responded well to the improved, more modern ranges in our core autumn/winter product categories of coats and knitwear. This was helped by more seasonally appropriate weather during the quarter, which strengthened demand and to some degree counterbalanced the weakness we are experiencing in the apparel market.”