10th Jan 2020 08:42
(Alliance News) - B&M European Value Retail SA on Friday reported that its sales in the run-up to Christmas grew at a slower pace than expected with its UK unit facing "reduced shopper footfall and political uncertainty".
B&M shares were down 8.0% in London at 365.60 pence each on Friday morning.
In the 13 weeks to December 28, its third quarter, the company said revenue increased 9.0% to GBP1.19 billion from GBP1.09 billion last year.
Its UK Stores delivered an 8.8% revenue rise to GBP957.4 million from GBP879.9 million. On a like-for-like basis, the UK unit posted a 0.3% sales rise.
Chief Executive Officer Simon Arora said: "Against the backdrop of a difficult UK retail environment with reduced shopper footfall and political uncertainty, our core B&M UK business generated continued growth and delivered a record level of peak season sales."
"Cumulatively, B&M UK has achieved 2.3% like-for-like sales growth during the financial year to date, albeit with a slower performance than anticipated during the run up to Christmas," Arora said.
The company said its like-for-like performance was hindered by broader challenges faced by the UK retail market. B&M reported that its also did not participate "in any early or unusual discounting activity over the quarter".
Sales from its Toys and Seasonal Confectionery categories were "disappointing" though this was offset by a strong showing from its Home Departments division.
Heron Foods, its value convenience store chain, reported 6.2% revenue growth to GBP95.6 million from GBP89.9 million, with five new stores opened during the period, taking its total estate to 295 stores.
Its French business Babou increased revenues by 29%, on constant currency basis, B&M said.
Its German business Jawoll, however saw sales revenue fall by 1.5% at constant currency basis to GBP53.0 million from GBP55.3 million. The strategic review of the unit, announced in November, is still ongoing, the company said.
B&M said it has seen a positive start to January trading but noted that the outlook for the rest of the quarter could be impacted by any adverse weather conditions.
By Loreta Juodagalvyte; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
B&M