(Adds detail, broker comment.)
By Jana Simmons
LONDON--Value clothing retailer Bonmarche Holdings PLC (BON.LN)
Thursday reported a 3.8% rise in like-for-like sales for the third
quarter ended Dec. 27, but said gross margins remained under
pressure in a competitive market.
"We are satisfied with Bonmarche's third quarter performance in
a challenging, promotionally-driven market," Chief Executive
Officer Beth Butterwick said. "Gross margins remained under
pressure, but we continued to make positive like-for-like sales
gains," she added.
The company, which focuses on women over 50 years old, expects
full year results to be in line with expectations, despite the
prolonged mild weather this autumn hitting winter clothing
sales.
Brokerage Investec said Bonmarche's third quarter figures show
that the retailer navigated a challenging market backdrop well and
lifted its share price target on the company to 325 pence from 315
pence.
Elsewhere in the sector, Associated British Foods PLC (PFD.LN)
said sales at its Primark no-frills clothing chain rose 15% over
the Christmas period, while mother and baby clothing and products
maker Mothercare PLC (MTC.LN) saw its U.K. like-for-like sales rise
1.1% in the third quarter.
At 1100 GMT, Bonmarche shares were up 7.0 pence, or 2.3%, at
308.5 pence.
Write to Jana Simmons at jana.simmons@wsj.com
