B&M: Sales slip for retailer as firm says it will appoint next boss ‘in coming weeks’

Shares rose to the highest level for almost two months but were still 40 per cent lower over the past year following slow trading.

In February, Alex Russo said he would step down as chief executive as the company also downgraded its profit guidance for the second time this year.

In a statement issued at the time, Mr Russo said: "I have thoroughly enjoyed my time at B&M since joining in 2020.

"The business has been successfully steered through the pandemic years and is now larger and stronger with group revenues increasing by almost 50 per cent and cash distributions to shareholders in excess of £2bn during my tenure. It has been professionally rewarding to assemble and work with a high quality leadership team and to retire leaving growing businesses with great potential in both UK and France.”

On Tuesday, the London-listed firm said it was “making progress” on its succession plans and will announce its next boss “in the coming weeks”.

It came as the company reported that group revenues for the 52 weeks to March 29 are set to have grown by 3.7 per cent, supported by new store openings, including in France, where it opened 11 new stores.

B&M’s UK arm however saw a 3.1 per cent drop in like-for-like sales over the year, with a 1.8 per cent decline in the latest quarter.

Demand for garden products, toys, paint and stationery grew in recent months, but sales of food were weaker.

Over the year, the company grew its UK store estate with 45 net openings and said it plans to open a similar number over the new financial year.

It added that earnings for the past year are set “to be above the midpoint” of its £605m to £625m guidance, after efforts to control its operating costs.

AJ Bell investment director Russ Mould said: “Value retail chain B&M has singularly failed to take advantage of what should have been supportive trading conditions in an environment where shoppers are still having to watch every penny.

“Today’s update helps extend a recent relief rally in the shares as the company narrows the guidance given in a recent profit warning.

“However, a new CEO and a clear direction for the business are needed before it can really get back on track, with current boss Alex Russo having fallen on his sword in the wake of the poor performance.”

Shares in the firm were up 1.8 per cent at 304.5p on Tuesday.