Bonmarche sales underpinned by solid online performance

Women's value clothing retailer Bonmarche reported a jump in sales for the 13 weeks to 1 July as a solid online performance lent a hand.

Like-for-like sales rose 7.6% from the corresponding period a year ago, with store LFL sales up 4.2% and online sales up 39%.

The company said trading in the first quarter has been in line with its expectations, which remain unchanged for the full year.

Chief executive Helen Connolly said: "I am pleased with the improvement in trading and in particular the further progress in online sales. Whilst we are in the early stages of implementing our strategy, I am encouraged by the positive response from customers to the developments in our ranges and the improvements we are making to the shopping experience.

The improved sales performance during the first quarter, achieved in a clothing market which remains challenging, underpins our confidence in the strategy, and our expectations for the full year remain unchanged."

At 1055 BST, the shares were up 9.5% to 98p.

Analyst Kate Calvert at Investec said it was a good start to the year, noting that sales momentum picked up versus Q4, which "should reassure" that Connolly’s focus on retail basics is paying off in line with its view that she has "material self-help opportunities from a product and operational perspective" to go for.

"We expect these to return the business to profit growth in FY18e, despite the more challenging industry backdrop, and continue to benefit in FY19e," she said.