Proactive Investors - Run By Investors For Investors

Bonmarche a surprise winner as heatwave boosts sales

The online business drove the first quarter improvement with a 27% rise
Bonmarache
Doing OK in tough markets

Budget clothing group Bonmarche PLC (LON:BON) proved one of the winners in this retail season as the warm weather gave sales a lift and as it committed to its dividend.   

Against what the group said was a strong comparative period, total sales rose by 2.7% in the quarter to June with a like-for-like improvement of 1.5%.

Online drove the improvement with a 27% rise, while the stores saw a 1.2% decline like-for-like. Bommarche also gave itself more wriggle room to pay a dividend as it lowered the earnings cover target.

Progressive dividend policy

The intention is to maintain a progressive dividend policy, the retailer added.

Helen Connolly, chief executive, said: "The improved sales performance during the first quarter, achieved in a clothing market which, whilst helped to some extent by more seasonal weather, remains challenging, underpins our confidence in the strategy.

Expectations for the full year remain unchanged, she added.

Shares rose 7% to 118p.

View full BON profile View Profile

Bonmarché Holdings plc Timeline

Related Articles

medical imaging graphic
June 13 2019
Here we take a closer look at the imaging and diagnostics firm IQ-AI
drainpipes
May 23 2019
Company is looking for more acquisitions after integration of Metro Rod
H&T
May 21 2019
H&T investing in digital offeringProfits gain in 2018Outlook upbeat as strategy pays off

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use