Bonmarche Holdings PLC Trading Update (3253C)
19 January 2018 - 6:00PM
UK Regulatory
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 +44 (0)20 3727
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
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