20 Jan 2017 07:00
20 January 2017
Bonmarché Holdings plc
("Bonmarché" or the "Company" or the "Group")
Trading Update
13 and 39 week periods ended 24 December 2016
Bonmarché, one of the UK's largest women's value retailers, presents its trading update for the 13 and 39 week periods ended Saturday 24 December 2016.
Sales for the 13 weeks ended 24 December 2016 increased by 3.3% against the corresponding period in FY16, and store LFL sales increased by 0.8%. Sales for the 39 weeks ended 24 December 2016 decreased by 1.3% and store LFL sales decreased by 5.3%. The table below summarises the figures and for reference also includes the figures for the five week financial reporting month of December.
A less promotional stance was taken throughout the quarter and whilst this impacted overall sales volumes it resulted in stronger gross margin performance, with product gross margin in the quarter 2.2% higher than in last year's corresponding period.
Store only LFL% change | Online only sales % change | LFL stores + online % change | Total sales % change | |
Q3 - 13 weeks ended 24 December 2016 | 0.8% | (3.8%) | 0.5% | 3.3% |
December - 5 weeks ended 24 December 2016 | (3.4%) | (14.3%) | (4.2%) | (1.5%) |
Year to 24 December 2016 - 39 week period | (5.3%) | (2.1%) | (5.0%) | (1.3%) |
As at 24 December 2016, Bonmarché traded from 327 stores and online (2015: 310 stores and online).
Outlook
The Company's financial position remains sound and the Board's expectation for the full year is unchanged, with our expectation being that the Group's pre-exceptional PBT is likely to fall within a range between £5.0m and £7.0m.
Helen Connolly, Chief Executive Officer of Bonmarché, 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.
The product gross margin for the quarter was 2.2% higher than for the corresponding period in FY16, due to a lower level of promotional activity than in the previous year. In particular, and for the first time in several years, the winter sale began in earnest on Boxing Day, rather than before Christmas.
There remains a degree of uncertainty as to trading conditions as we enter our final quarter. Nevertheless, 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."
- Ends -
Note:
As stated in the Interim Results statement in November, we will add a 53rd week at the end of this financial year, which will therefore end on Saturday 1 April 2017 rather than Saturday 25 March.
For further information regarding Bonmarché, please call:
Bonmarché Holdings plc Helen Connolly, Chief Executive Stephen Alldridge, Finance Director
| c/o FTI +44 (0)20 3727 1109 |
FTI Consulting - Communications Advisor Jonathon Brill, Georgina Goodhew, Eleanor Purdon
| +44 (0)20 3727 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 growing market segment, operating across the UK.