Retailer Takes Action to Boost Performance

  • B&M shares fall after profits slide 28% to £198m
  • Revenues improve 4% to £2.7bn, driven by B&M UK volume growth and ASP increases
  • B&M UK LFL sales in H1 improved 0.1%, with positive volume and value LFLs offset by a decline in FMCG LFL sales
  • Timing of Easter and early onset of good weather impacted sales in April, weakened in May
  • CEO Tjeerd Jegen announces ‘Back to B&M Basics’ plan for improving operational execution and LFL sales growth

Budget retailer B&M has seen its shares fall after revealing a 28% drop in pre-tax profits to £198m for the six months ending September, despite a 4% revenue increase to £2.7bn. B&M UK revenues improved 3.5% to £2.19bn and made up over 80% of total group revenue. However, B&M UK LFL sales in H1 only increased by 0.1%, with positive volume and value LFLs in general merchandise offset by a decline in FMCG LFL sales. CEO Tjeerd Jegen attributed the weak performance to poor operational execution and announced a plan called ‘Back to B&M Basics’ to improve execution and drive LFL sales growth. The plan focuses on sharpening price position, refocusing ranges, and improving in-store availability.

Factuality Level: 8
Factuality Justification: The article provides accurate information about B&M’s financial performance and the actions taken by the CEO to improve it, with no clear signs of sensationalism or opinion masquerading as fact.
Noise Level: 3
Noise Justification: The article provides relevant information about B&M’s financial performance and the actions taken by the CEO to improve it, but it lacks in-depth analysis or exploration of long-term trends or possibilities. It also does not offer significant actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: B&M’s shares slide due to a 28% fall in pre-tax profits, impacting the company’s performance and future outlook
Financial Rating Justification: The article discusses B&M’s financial performance, including a decline in profits and its impact on the company’s share price, as well as the CEO’s plan to improve operational execution.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk