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discount retailer bam Issued new profit warning, attributed revised outlook to ongoing sales volume Pressure and strategic price reductions were implemented as part of its overhaul.
The group reported a 0.6% decline. U.K. Year-over-year sales for the key quarter ended December 27.
However, it noted that growth in December was an “encouraging” 3%, with positive momentum continuing into January.
This is the third time since October that B&M has lowered its full-year basic profit forecast, which is currently expected to be between 440 million pounds and 475 million pounds.
This is a significant reduction from previous guidance of £470 million to £520 million, and a significant reduction from the reported underlying earnings of £620 million for the year to 29 March 2025.
Following the announcement, B&M stock The stock initially fell 5% in early trading Thursday before recovering slightly to close down more than 1%.
B&M said: “Continued investment in price and clearance, improvements in stock quality and Heron Foods’ poor financial performance have driven the price range down and we will continue to review and reposition our customer offers.”
sales volume Shares of Heron Foods fell 0.1% in the latest quarter.
B&M said it was stepping up efforts to reduce unwanted stock through deep discounts and “believes the actions we are taking will restore sustainable year-on-year growth for B&M UK over the next 12 to 18 months”.
The group’s “back to basics” plan, launched last October, has boosted offers, including price cuts across the board, while also significantly reducing product ranges in a number of categories to simplify operations and reduce costs.
As well as trade pressures, the company was hit by an accounting error last October after it failed to correctly account for an additional £7m in overseas freight costs, leading to a cut in its annual profit guidance.
The organization said on Thursday that its investigation into the incident was now complete, adding that it was “implementing the report’s recommendations regarding specific IT and financial operational processes.”
Tjeerd Jegen, who was appointed chief executive last year, said: “As we progress towards ‘returning to B&M’s basics’, we are looking for opportunities to invest more deeply in clearing discontinued product lines.
“Like our pricing actions, these are investments in B&M’s long-term strength, but they do impact near-term financial results.
“As a result, we are lowering our full-year guidance to reflect these actions and Heron’s poor financial performance.”