Profits at women’s retailer Bonmarché fell 40 per cent this year as the British company was hammered by Brexit.
Pre-tax profits tumbled to £5.8million in the year to April as like for like in-store sales fell 4.3 per cent.
Revenues only increased by 1 per cent to £190.1million despite the collapse of main rival BHS.
Profits at women’s retailer Bonmarché fell 40 per cent this year as the British company was hammered by Brexit
Shares were trading down 2.5 per cent at 94.00p after the report this morning.
The group blamed several factors for the slump, including Brexit pressures and even ‘unseasonal’ warm weather which apparently put people off buying winter clothes.
The company, which has a habit of blaming the weather, said: ‘The apparel market has been in decline, with demand affected by consumers’ response to factors such as inflation, the referendum on Brexit, and unseasonal weather patterns, which, as we have noted in the past, significantly influence our customers’ shopping habits.’
The collapse in the value of the pound following the decision to quit the European Union has hammered British businesses and consumers, ramping up import costs and, as a result, shop prices.
But chief executive Helen Connolly remains confident, insisting the company is ‘well positioned’ for growth as it continues to modernise.
She said: ‘Since joining the business almost a year ago, I have been struck by the passion and drive of colleagues throughout the business and I am confident that with our current focus on modernising and improving the offering for our customers, we remain well placed to serve the 50 plus women’s value clothing market.’
The group blamed ‘unseasonal’ warm weather which apparently put people off buying winter clothes. Pictured: Brighton beach on Sunday
‘A combination of internal and external factors over the past year prevented us from improving at the rate we had aimed for. However, we believe that the business is now well positioned, with a compelling proposition and robust plan.’
‘As outlined previously, it is clear that the direction of travel is broadly right, albeit the effectiveness of execution needs to improve. Our update today provides further detail on the areas where we see the greatest opportunities and how we are already beginning to address these.’
‘I would like to thank all my colleagues for their continued dedication to Bonmarché, and I look forward to updating on our progress over the coming year as we drive forward our strategy to successfully grow profitable sales by gaining market share’.
Bonmarché is based in Wakefield, West Yorkshire and has almost 400 stores across Britain.