The City targets Bonmarché as mild weather sinks plus-size store’s salesComments Off on The City targets Bonmarché as mild weather sinks plus-size store’s sales
The company, which targets the “silver pound”, kicked off a wave of retail flotations when it joined the London Stock Exchange in late 2013.
Despite warm winter weather, it said same-store sales were up 4% in the year ending March 28. However, during the final 13 weeks of this period, they were down 4.7%.
Boss Beth Butterwick said: “This has been a year of contrasts. A strong performance in the first half was supported by good, summer weather, however, the mild autumn created more-difficult trading conditions in the second half of the year.
“During the second half of the year in particular, the loyalty of our core customers and our ability to maintain a tight control on costs have been key strengths.”
Bonmarché’s shares fell 15p to 261.5p, still significantly above the 200p they were valued at when the company listed, unlike other flotations such as Boohoo.com.
Analysts at Cantor Fitzgerald said that the company is likely to be a beneficiary of the recent pension reforms.
“This could prompt a significant spending boom over the next two years as is evident from the significant drop in annuity sales over the last six months,” they said.