Bonmarché H1 profit declines, store like for like sales drop 4 percent

Total revenue at Bonmarché for the first half period was 97.9 million pounds (126 million dollars), which the company said was in line with H1 FY18, while combined like for like sales declined by 1 percent; store-only like for like sales were down 4 percent. Underlying profit before tax reduced to 3.3 million pounds (4.2 million dollars) against 4.2 million pounds last year, while statutory profit before tax was 2.3 million pounds (2.9 million dollars) compared to 4.2 million pounds in H1 FY18. Underlying basic EPS was 5.3p compared to 6.8p last year and basic EPS was 3.3p against 6.8p last year’s first half.

Commenting on the half year trading, Helen Connolly, Chief Executive of Bonmarché, said in a statement: "Whilst store trading has been impacted by the general weaker consumer sentiment and footfall seen across the market, we have continued to improve our proposition, particularly our digital capabilities and with a broader, modernised product offer, which is reflected in our strong online performance. Providing that sales during the key Black Friday through to Christmas trading period meet expectations, the board maintains the guidance published in September, being that the underlying PBT for the Group for FY19 will be 5.5 million pounds.”

Bonmarché online sales jump 28.9 percent

The company’s online sales increased 28.9 percent for the first half period. The company added that at constant exchange rates gross margin increased by 170bps due to better buying and stock management, which was, however, offset by significant adverse FX movements resulting in a gross margin of 57.2 percent compared to 57.8 percent in H1 FY18.

Bonmarché opened just one store in Aberdeen, while five stores were closed at the end of their leases, either because they were in locations which were not expected to perform well in the future or because the company was not satisfied with the rent reduction offered by the landlord. The number of stores at the year-end is expected to be approximately 320, broadly in line with the current number.

The company’s directors have declared an interim dividend of 2.5 pence per share, which will amount to 1.2 million pounds, for the 26 weeks ended September 29, 2018.

Picture:Facebook/Bonmarché