B&M cuts profit outlook, shares sink

Investing.com — Shares of B&M European Value Retail (LON:BMEB) plummeted over 12% on Thursday after the variety store chain lowered its profit guidance for the fiscal year 2025. 

The company adjusted its EBITDA expectations in the range of £590 million to £620 million, a downward revision from previous forecasts.

In its third-quarter trading update, B&M reported strong revenue growth across its key markets, with a year-on-year increase of 2.8% in the UK and 12.5% in France.

The company reported robust seasonal sales in categories like toys and homeware, as well as solid gross margins, fueled by disciplined inventory management and operational efficiency.

However, despite these positive figures, B&M revised its adjusted EBITDA guidance for FY25 to a range of £620 million to £650 million.

“B&M has a strong track record on buying and offers SKU discipline and tight cost control. B&M should benefit from consumers remaining value conscious and offers a strong store rollout story in both the UK and France, with only 2% share of UK retail overall,” said analysts at RBC Capital Markets in a note.

While B&M continues to position itself as a value-driven retailer focused on everyday low prices, the tightening of disposable incomes across its key markets has likely contributed to tempered earnings forecast.