15th Jan 2015 09:46
LONDON (Alliance News) - Bonmarche Holdings PLC Thursday said it expects its full-year performance to meet its own expectations, after it reported strong sales growth over the key Christmas trading period, driven particularly by online sales, although its gross margins remained under pressure.
The women's value fashion retailer said total sales were up 10.0% in the five weeks to December 27, an improvement from the 9.1% growth it reported for the 13 weeks to December 27, the third quarter of its financial year. Like peers, Bonmarche was hit by unseasonably warm weather in early autumn which kept customers out of stores packed with winter clothing ranges.
Its total sales are up 10.9% in the 39 weeks to December 27.
The company said like-for-like sales from its stores were up 3.9% in the most recent five weeks, up from 3.8% for the 13 week period. Online sales, meanwhile, were up 41.3% over the Christmas period, an improvement from the 34.9% growth posted over the quarter as a whole. Like-for-like store sales are up 6.4% in the financial year to date, while online sales are up 44.4%.
Bonmarche had 282 stores at the end of calendar 2014, up from 264 stores at the end of 2013.
"We are satisfied with Bonmarché's Q3 performance in a challenging, promotionally-driven market. Gross margins remained under pressure, but we continued to make positive LFL sales gains. Much of the challenge in the clothing market was due to the prolonged mild weather, which began in September and continued until mid-December," Chief Executive Beth Butterwick said in a statement.
"The board believes that the year's performance will be in line with its expectations," she added.
Bonmarche shares were up 1.5% at 306.02 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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