B&M alerts over profits again amid turnaround plan
Discount chain B&M has warned over profits once again after seeing sales come under pressure and slashing prices as it continues with overhaul efforts.
The group said UK like-for-like sales fell 0.6% over the all-important quarter to December 27, although it saw an “encouraging” 3% rise in December and said growth had continued into January.
The group cut its full-year underlying earnings outlook for the third time since last October, to between £440 million to £475 million, down from the previous guidance of £470 million to £520 million. This would mark a hefty drop on the £620 million underlying earnings reported for the year to March 29 2025. Shares in B&M fell as much as 5% at one stage in morning trading on Thursday, before settling more than 1% down.
B&M said: “The downward movement in range is driven by ongoing investments in pricing and clearance, improvements in stock quality and the financial underperformance of Heron Foods, where we continue to review and reposition our customer offer.”