Bonmarche H1 revenue and profit down on weather, BHS

21st Nov 2016 07:48

(ShareCast News) - Clothing retailer Bonmarche reported a drop in revenue and profit for the 26 weeks to 24 September, attributing the decline in part to the weather and the fact that competitor BHS went into administration. Revenue fell 4% from the same period last year to £93.1m while pre-tax profit was down 63.7% to £2m. Meanwhile, like-for-like sales were 8.6% lower and the company's interim dividend was unchanged at 2.5p per share.Bonmarche said a number of external factors had an impact on sales. It pointed to the fact that BHS, a significant competitor, went into administration in April 2016 clearing its residual stocks over the following months at discounted prices, which affected Bonmarché's sales, particularly in late April and May 2016.In addition, it said the weather was a major variable which adversely affected performance during the first half.Summer 2016 was characterised by weather which was generally too cool during May, June and July to create demand for seasonal basics such as t-shirts, and then the warm weather during September delayed sales of product, such as coats, planned for the beginning of the autumn/winter season.However, the warm September weather resulted in effective clearance of much of the remaining summer stock, albeit at discounted prices.Chief executive Helen Connolly said: "I believe that Bonmarche has significant potential to grow as a retailer serving the 50 plus women's value clothing market, a belief that has strengthened with my continued exposure to the business. Work has already begun, to modernise and simplify our operations and improve basic disciplines - key foundations for the more strategic priorities of developing the customer proposition and improving customer journeys."I have been encouraged by the enthusiasm and commitment of the Bonmarche team, and remain confident that despite the difficult trading conditions, the business will resume growth during FY18."