B&M set to smash expectations as retailer reports lockdown boost
B&M European Value Retail hailed a “strong” first half of the year on the backdrop of the coronavirus crisis, with earnings for the six months to September set to smash analysts’ expectations.
The group expects adjusted earnings before tax, amortization and depreciation for the six months to 26 September to be between £250m and £270m, ahead of analysts’ expectations of £208m for the period.
Earlier this month the variety retailer reported that sales had passed £1bn for the year amid the pandemic, as quarantined Brits turned to DIY and stockpiled products during lockdown.
In the period between 29 March and 27 June, B&M reported 27.7 per cent growth in group revenue from £904.6m to £1.15bn, as surging demand for gardening and DIY products offset a decline in customer numbers.
B&M today said it was well-placed to continue profitability in the UK and to continue to develop its operations in France.
However, the group withheld any forecast for the second half of the year, citing Covid-19 and economic uncertainty. B&M said it would provide a more detailed update with its half year results on 12 November.
The Liverpool-based chain was classed an “essential” retailer by the government when the Prime Minister announced a nationwide lockdown in March, meaning the company has benefitted from remaining open throughout the crisis.
In the UK, B&M has 656 stores trading but no new stores have been opened due to the impact of the coronavirus crisis. The firm said it expects to open net 30 new stores, with at least 15 net new Heron stores.