B&M raises profit forecast as sales soar during lockdown
Discount chain B&M has bucked the trend of struggling retailers after posting revenue growth of 25.3 per cent for the first half of its financial year and raising its profit forecast.
The group saw sales jump between 29 March and 26 September as the coronavirus lockdown hit, citing its “well-attuned business model to the evolving needs of customers” able to buy a range of products at out-of-town stores.
The company benefitted from stockpiling, other locations selling out of goods and increased demand in hygiene and DIY products.
B&M has adjusted its earnings forecast for the period as a result, raising them to about £285m from its previous estimate of £250m to £270m.
Trading momentum continued into the second quarter despite the easing of lockdown restrictions, with 19.1 per cent like-for-like growth on the same period last year.
The chain has also opened up nine new stores during the period, although this was offset by the closure of eight older, smaller stores.
It said it planned to open between 40 and 45 new stores at the beginning of next year, before the end of its financial year in April.
“Our group has performed well in the first half. Our business model is proving well-attuned to the evolving needs of customers, given our combination of everyday value across a broad range of product categories being sold at convenient out-of-town locations,” said B&M chief executive Simon Arora.
“Our people have risen to the many challenges posed by the Covid-19 crisis, not least in serving our customers through a period of high demand, keeping our shelves filled, providing a clean and safe shopping environment, as well as sourcing higher volumes than we had planned.”
The group’s share price was up four per cent on the day to 509.8p per share.