The Courier & Advertiser (Perth and Perthshire Edition)
Bonmarche stocks slumps on profits warning
Shares in Bonmarche slumped yesterday as the retailer warned over profits, blaming weak consumer demand and hot summer weather for a decline in sales.
While online sales held up during the second quarter, the womenswear firm said store revenue had come in below expectations.
As a result, underlying pre-tax profit for the year is now expected to be approximately £5.5 million, down from last year’s £8m.
Shares in Bonmarche collapsed over 20% in early trading exchanges.
Chief executive Helen Connolly said: “These are undoubtedly challenging times in the retail industry and, in common with many other businesses, Bonmarche’s store trading has been impacted by weaker consumer sentiment and footfall.
“We remain focused on exploiting the opportunity afforded by the increasing demand for online shopping, whilst modernising the store offer and customer experience.”
The high street chain also expects to take a foreign currency hit in the year.
Bonmarche saw shares plunge at the start of the year after revealing a collapse in Christmas trading, and was then hit by the Beast from the East in March.
This summer’s hot weather “may have delayed demand for early autumn stock”, the group added.
Shares in Bonmarche closed down 19.00p at 84.00p yesterday.