Budget retailer B&M’s shares sink as UK sales growth fizzles
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Shares in B&M tumbled by more than a 10th on Thursday after the discount retailer revealed its UK sales dipped over the final quarter, as its boss insisted the business was “undistracted” by economic news. The Liverpool-based retailer said it generated £1.4 billion in revenues between October and December in the UK.
This was 2.8% higher than the same period a year ago. The business remains undistracted by the current economic headlines. However, when compared like-for-like, which strips out the impact of sales from new store openings, it marked a 2.8% decline. But it said like-for-like sales were higher in December alone, with shoppers bagging a bargain in the run-up to Christmas on items including toys, seasonal confectionery and festive home ranges.
This momentum has continued into the first few days of January, with customers responding well to newly launched ranges, B&M reported. Analysts for Peel Hunt said revenues came in below market expectations, “indicating that consumers went underground for most of October and November” before a more “encouraging” December.
The Christmas update was not enough to cheer investors and shares in the FTSE 100-listed company dropped about 13% on Thursday morning. Alex Russo, B&M’s chief executive, said: “The business remains undistracted by the current economic headlines. “Our operating model is well set up to give customers exceptional value when they need it most.
