Investors back Bonmarche as it ploughs on with turnaround effort

 
Helen Cahill
Follow Helen
Analysts hailed a turnaround at Bonmarche earlier this year (Source: bonmarche.co.uk)

Bonmarche's sales have continued apace as the retailer continued to steam ahead with its turnaround effort.

The figures

For the 13 weeks to 1 July, total sales climbed 7.6 per cent as compared to the same period a year before. On a like-for-like basis, store sales were up 4.2 per cent. Online sales jumped 39 per cent.

Read more: Bonmarche share price rises as investors hail turnaround

At time of writing, Bonmarche's share price was up 10.6 per cent at 99p.

Why it's interesting

The positive trading update comes after a string of profit warnings at Bonmarche last year. The retailer was affected by unseasonable weather, and said it was hit by the clearance sales at BHS.

However, in April, Bonmarche issued a 4.3 per cent rise in its like-for-like sales for the fourth quarter, and it appears the business is holding on to that momentum.

Cantor Fitzgerald's Mark Photiades said: "We are pleased to see the online growth rate accelerate again as initiatives aimed at kick­ starting growth in this area initiated.

"We understand that the gross margin is broadly in line with last year with lower intake margins offset by greater full price sell through and lower discounting."

What Bonmarche said

Helen Connolly, Bonmarche chief executive, said: "I am pleased with the improvement in trading and in particular the further progress in online sales.

"Whilst we are in the early stages of implementing our strategy, I am encouraged by the positive response from customers to the developments in our ranges and the improvements we are making to the shopping experience."

Related articles