Bonmarche tumbles as sales drop over Christmas

Shares in Bonmarche tumbled on Friday as the womenswear retailer posted a drop in sales over the Christmas period amid a “challenging” clothing market.

Sales in the 13 weeks to 30 December fell 5.5% compared with the same period a year ago, with store like-for-like sales down 9.7%. However, online sales were up 28.5%.

Meanwhile, in the 39 weeks ended 30 December, sales rose by 0.9%, with store LFL sales down 2.8% and online sales up 35.5%.

Chief executive Helen Connolly said: "The clothing market became more challenging during this quarter, especially on the high street; consequently our store LFL was disappointing. We are pleased with the strong growth we achieved in online sales, reflecting our strategic focus in this area. Following the trend seen throughout this year, the 50+ women's outer/sportswear market declined compared to last year, however Bonmarche continued to grow its share.

“There remains uncertainty as to how trading conditions will evolve as we enter our final quarter. We do not anticipate material changes in the underlying market conditions, and in this short term outlook, the weather represents the most significant uncertainty due to its effect on consumer shopping behaviour, with the risks equally weighted on the up and downsides. At the end of the third quarter, the board's view of the likely outcome for the full year remains in line with previous expectations.”

Connolly said that while the market is expected to remain difficult, the group has a number of self-help initiatives in progress or planned for FY19, which are expected to deliver profitable LFL sales growth in stores. She also pointed to the continuation of strong sales growth online.

Accendo Markets analyst Mike van Dulken said: “The update may not include a 2018 warning per se, however, management’s uncertain outlook, especially for weather, expecting things to remain difficult, is as good as. Especially after barely managing flat like-for-like sales in 2017.”

At 0910 GMT, the shares were down 22% to 99p.