Shares in retailer Bonmarche have plunged 30% as it issued its third profit warning in six months after “significantly weaker” trading in recent weeks.
The cut-price womenswear chain, which had been forecasting an underlying annual loss of up to £4m, said it now expects to be in the red by between £5m and £6m for the financial year to the end of March.
It comes after chief executive Helen Connolly said in December that trading conditions were “significantly worse even than during the recession of 2008-9”.
That had prompted a cut in profit guidance by the retailer, which followed a previous warning in September.
In its latest trading update, Bonmarche said that sales just after Christmas – helped by heavy discounting – had initially left it on course to meet the new target.
“However, trading since the beginning of March has been significantly weaker, reversing sales gains made in the previous months,” the group said.
Bonmarche said there was now a likelihood of sales for the rest of the month “continuing to follow this trend” which would result in a bigger annual loss than previously expected.
It blamed the recent downturn in trading on demand for “transitional” winter-spring ranges having already been satisfied during January and February.
But the retailer, which has more than 300 UK stores, said that there had been a “positive early reaction” to sales of its spring offering during a spell of warm weather late last month.
It said its expectation for the 2019/20 financial year remained unchanged.
The profit warning is the latest sign of distress from the beleaguered high street and comes a day after struggling chain Footasylum said it was being snapped up by larger rival JD Sports.
Meanwhile a survey of household finances this week found that consumers were holding off from big-ticket purchases such as cars and holidays amid Brexit uncertainty.
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