Bonmarche Holdings PLC Trading Update (5304L)

TIDMBON

RNS Number : 5304L

Bonmarche Holdings PLC

20 April 2018

20 April 2018

Bonmarché Holdings plc

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

Trading Update

52 week period ended 31 March 2018

Bonmarché, one of the UK's largest women's value retailers, presents its trading update for the 52 week period ended 31 March 2018 ("FY18"). The Company is pleased to confirm that, reflecting the good progress achieved during the financial year, the FY18 profit before tax will be in line with the Board's expectations.

Online sales maintained the strong growth seen throughout the financial year, against comparatives that became more difficult in the fourth quarter. Store sales performance was disappointing, reflecting the issues more widely reported in the clothing market.

Whilst total sales for the year therefore declined slightly, the gross margin percentage was resilient. The lower headline gross margin that had been anticipated due to adverse FX movements, was largely mitigated through tight stock control and improvements to the loyalty scheme, which led to lower discounting. There were also significant overhead cost savings, delivered through improved operational efficiency and reduced, but more effective, marketing expenditure.

The Company's financial position remains sound.

The table below summarises the store, online and combined sales performance during FY18 and for the fourth quarter of the financial year.

 
                         Store only      Online only     LFL stores   Total sales 
                         LFL% change    sales % change    + online      % change 
                                                          % change 
---------------------  -------------  ----------------  -----------  ------------ 
 Year ended 31 March 
  2018 
  52 week comparison 
  period                   (4.5%)           34.5%          (1.5%)       (0.5%) 
---------------------  -------------  ----------------  -----------  ------------ 
 13 weeks ended 31 
  March 2018 
  (fourth quarter of 
  FY18)                   (11.1%)           31.2%          (7.4%)       (6.2%) 
---------------------  -------------  ----------------  -----------  ------------ 
 

As at 31 March 2018, Bonmarché traded from 325 stores and online (2017: 327 stores and online).

Helen Connolly, Chief Executive Officer of Bonmarché, said:

"As anticipated, trading conditions in the final quarter of our financial year remained challenging and, against this backdrop, I am pleased that we have delivered an increase in the FY18 profit before tax compared to last year.

"Whilst we expect the market to remain difficult, our focus will be on continuing to improve our proposition to customers through a number of self-help initiatives, which we expect to drive further progress for the business during the new financial year.

"We will publish our preliminary results for the 52 week period ended 31 March 2018 on Tuesday, 19 June 2018."

- 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 
  Georgina Goodhew 
  Eleanor Purdon                            [phone] 
 

Notes to Editors:

Bonmarché is one of the UK's largest women's value retailers, focused on selling stylish clothing and accessories in a wide range of sizes, via its own store portfolio and online. Established in 1982, Bonmarché has 35 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

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April 20, 2018 02:00 ET (06:00 GMT)