Womenswear retailer Bonmarché saw shares rise over 3 percent on Monday, despite falls in both sales and revenue.
The group published its unaudited interim results for the 26 week period ended 24 September 2016, seeing an 8.6 percent drop in in-store sales. Total revenue stood at £93.1 million, with profit before tax at £2 million – in line with revised expectations.
In a statement, Bonmarche said market conditions had continued to be ‘very difficult’ over the first half of the year. The introduction of the National Living Wage added £0.6 million to costs over the past two quarters, and BHS’s administration and subsequent stock discount sale also had an impact on sales.
Total revenue for the first half of the financial year was 4 percent lower than for the equivalent period last year. Helen Connolly, Bonmarché’s chief executive, commented:
“I believe that Bonmarché 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.
Online sales fell by 1.1 percent compared to last year, with a decline of 2.7 percent during the first quarter, and growth of 2.3 percent in the second quarter.
“I have been encouraged by the enthusiasm and commitment of the Bonmarché team, and remain confident that despite the difficult trading conditions, the business will resume growth during FY18”, Connolly continued.
“I believe that the direction of travel [for the company] is right, but that the effectiveness of execution needs to improve. My plans will therefore focus on improving the clarity of the customer proposition, and operational improvements in all channels, rather than a major strategic repositioning.”
Bonmarche (LON:BON) is currently trading up 3.49 percent at 90.5 (1320GMT).