Overview
Shares in B&M European Value Retail Plc (BMEB) dropped 4% on Wednesday after the discounter disclosed a fall in like-for-like UK sales for the first quarter of its 2027 financial year, covering the 13 weeks to June 27. The company reported a mixed set of trading metrics, with the group registering modest revenue growth despite a weaker garden season in the UK.
Quarterly performance
B&M said UK like-for-like sales fell 2.3% in the quarter, reflecting a later start to the garden and outdoor season compared with last year, when unusually early warm and dry weather had driven a 10.9% uplift in like-for-like garden sales. Total B&M UK revenue rose 0.3% to 1.14 billion.
At group level, revenue increased 2% to 1.43 billion, supported by stronger performances in B&M France and Heron Foods. B&M France posted revenue of 156 million, up 14.6%, with like-for-like sales up 5.3% (compared with 1.7% in the fourth quarter). Heron Foods delivered revenue of 142 million, up 2.8%, with like-for-like sales growth of 2.6%.
Management commentary and inventory
Chief Executive Officer Tjeerd Jegen framed the quarter as the companys most seasonally variable for sales and pointed to the later garden season versus a strong prior-year comparator as a key driver of the UK like-for-like decline. The CEO said that general merchandise like-for-like sales returned to growth in May and June, and that garden and outdoor inventories ended the quarter at normalized levels.
The group confirmed that its UK FMCG trading margin remained below the prior-year level as it continued to invest in price in a competitive market, while the general merchandise trading margin was higher than a year earlier. B&M said it expects year-on-year margin improvement over the coming year as it rolls out its autumn and winter ranges.
Analyst perspective
Jefferies, which maintains a "hold" rating and a 180 pence price target, described the update as indicative of "a slow start to FY27," noting the UK like-for-like decline of 2.3% was broadly in line with its forecast for a 2.0% fall. Analysts Andrew Wade and Grace Gilberg said the weaker headline UK result was largely a function of a strong weather-driven comparable from the prior year and less favourable weather early in the current period.
The Jefferies team highlighted that general merchandise returned to growth in May and June and that inventories were normalized by the quarter end. They described Frances like-for-like result as "robust," while noting France remains only about 10% of the group. Overall, Jefferies called the update "very much as expected" and saw little to prompt a change to consensus or their neutral stance.
Strategic moves and governance
B&M reiterated progress on its "Back to B&M Basics" plan, including SKU rationalization to sharpen FMCG ranges. The company said SKU rationalization was 75% complete across UK stores by the end of July. The group also confirmed the June 24 appointment of Atheeq Ahmed as chief financial officer and executive director, effective February 2027, with Peter Watermann continuing as interim CFO.
Store footprint
As of June 27, B&M operated 797 stores in the UK under the B&M brand, Heron Foods and B&M Express, and 151 stores in France under the B&M brand.
Implications for the market
The trading update shows a retailer managing demand volatility tied to seasonality and weather-driven comparatives while balancing price investment in FMCG against margin recovery expectations from general merchandise. The group-level revenue growth was supported by international and convenience formats, partially offsetting the UK like-for-like decline.
Investors reacted to the headline UK sales shortfall and the weather comparison, pushing the shares down 4% on the day of the announcement.