B&M posts strong results but comparable sales growth is low
The company, which sells a wide range of affordable merchandise from homewares to beauty, kidswear and adult clothing/footwear, also said it’s “well placed to prosper in a difficult and uncertain retail environment.”
The firm reported pre-tax profit of £115 million for the half to the end of September, up from £86.8 million a year ago.
Group revenues increased by 16.1% to £1.563 billion and UK revenues were up 7.1%, although like-for-like revenues rose only 0.9% on an underlying basis (excluding the non-comparable Easter trading week which fell in week 53 of FY18). If that adjustment hadn’t been made, like-for-like sales would have been flat.
The company also said that at the start of Q3, like-for-like sales growth so far in B&M branded stores in the UK has been similar to H1, and the business is well placed for ‘golden quarter trading, although it’s clear that we shouldn’t be expecting any big leaps in like-for-like sales.
German business, Jawoll, opened two new stores in the period, and is on track to open 10 new stores this financial year. Its revenue growth was 4.1%, although the margin was dented as expected by clearance activity on old stock lines as it introduced more B&M sourced products.
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