Bonmarche Holdings PLC Trading Update (3253C)

TIDMBON

RNS Number : 3253C

Bonmarche Holdings PLC

19 January 2018

19 January 2018

Bonmarché Holdings plc

("Bonmarché" or the "Company" or the "Group")

Trading Update

13 and 39 week periods ended 30 December 2017

Bonmarché, one of the UK's largest women's value retailers, presents its trading update for the 13 and 39 week periods ended Saturday 30 December 2017, and confirms that the Board's profit expectation for the year remains unchanged.

Sales for the 13 weeks ended 30 December 2017 decreased by 5.5% against the corresponding period in FY17. Store LFL sales decreased by 9.7% and online sales increased by 28.5%. Sales for the 39 weeks ended 30 December 2017 increased by 0.9%; store LFL sales decreased by 2.8% and online sales increased by 35.5%. The table below summarises the figures and for reference also includes the figures for the five week period ended 30 December 2017.

Anticipating the continuation of difficult market conditions during our third quarter, we adjusted our stock purchasing plans, and therefore the level of discounting was reduced compared to last year, resulting in a slight improvement in the gross margin percentage. Meanwhile, costs have been tightly controlled, and the Company's financial position remains sound.

 
                          Store        Online      LFL stores     Total 
                         only LFL%    only sales    + online      sales 
                          change       % change     % change     % change 
---------------------  -----------  ------------  -----------  ---------- 
 Q3 - 13 weeks 
  ended 30 December 
  2017                    (9.7%)        28.5%        (6.9%)      (5.5%) 
---------------------  -----------  ------------  -----------  ---------- 
 December - 5 
  weeks ended 30 
  December 2017          (10.4%)        39.2%        (7.5%)      (6.2%) 
 Year to 30 December 
  2017 - 39 week 
  period                  (2.8%)        35.5%         0.0%        0.9% 
 

As at 30 December 2017, Bonmarché traded from 324 stores and online (2016: 327 stores and online).

Helen Connolly, Chief Executive Officer of Bonmarché, 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 Bonmarché 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.

Looking further ahead, whilst we expect the market to remain difficult, we have a number of self help initiatives in progress or planned for FY19, which are expected to deliver profitable like for like sales growth in stores, and the continuation of strong sales growth online."

* Kantar Worldpanel figures for the 24 weeks ended 19 December 2017

- Ends -

For further information regarding Bonmarché, please call:

 
 Bonmarché Holdings plc             c/o FTI +44 (0)20 
  Helen Connolly, Chief Executive         3727 1000 
  Stephen Alldridge, Finance Director 
 FTI Consulting - Communications 
  advisor 
  Jonathon Brill                         [phone] 
  Georgina Goodhew                        1000 
 

Notes to Editors:

Bonmarché is one of the UK's largest women's value retailers, focused on selling stylish, affordable, quality clothing and accessories in a wide range of sizes, via its own store portfolio and online. Established in 1982, Bonmarché has more than 30 years of experience in this market segment, operating across the UK.

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTFKFDPOBKDPDD

(END) Dow Jones Newswires

January 19, 2018 02:00 ET (07:00 GMT)