Shares in fashion retailer Bonmarché (BON) plummeted 30 per cent following news that pre-tax profits will fall short of expectations this year and chief executive Beth Butterwick plans to defect to high street rival Karen Millen. There's no news as to exactly when Ms Butterwick will leave, or who her successor will be.
Bonmarché only joined Aim in November 2013 - before moving to the main board in October this year - and has worked hard to adapt its business to changing consumer tastes, bringing its store estate up to scratch and limiting its involvement in heavy discounting. But at the time of the interim results in November, management warned trading conditions were "challenging", as mild Autumn weather deterred customers from replenishing their winter wardrobes. Conditions would have to dramatically improve before the year-end for the company to achieve its profit forecasts.
But the trading environment hasn't improved. December has been very difficult thanks to the timing of promotional bonanza Black Friday, and bosses admit they expect demand to remain muted for the rest of the winter season. Pre-tax profits are now expected to fall in the range of £10.5m and £12m. That compares with a previous forecast of £13.4m from brokerage Investec.
