Shares in Bonmarché tumbled by more than 25% this morning (19 March) as the UK value women’s wear retailer issued another profit warning following significantly weaker trading since the beginning of March.
Updating the markets, the company said it has seen the reversal of sales gains made in previous months, while sales levels for the rest of March are expected to continue to follow this trend.
As a result, underlying profit before tax loss for the year is now expected to be between GBP5m and GBP6m (US$6.64bn-$7.97bn). The amount compares to a range of breakeven to a loss of GBP4m forecast in December.
“We believe that the recent downturn in trading is a consequence of the demand for transitional ranges, between winter and spring, having been satisfied during January and February,” Bonmarché said. “Although sales of spring season stock benefitted from the spell of warm weather in late February, this is not yet a large enough part of the sales mix to compensate for the lower demand for transitional stock. Nevertheless, on the basis of this positive early reaction to the spring product, our expectation for FY20 remains unchanged.”
The profit warning is the retailer’s third in the last six months.
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