28th Jul 2014 09:34
LONDON (Alliance News) - Discount retailer B&M European Value Retail SA Monday said trading in its fiscal first quarter was strong, boosted by the recent acquisition of German discount retailer JA Woll Handels, a stronger product offering and growth in the average customer transaction value.
The value retailer, which listed on the London main market last month with a market capitalisation of around GBP2.8 billion, said group sales for the 13 weeks to June 28 increased almost 32% to GBP367.0 million, up from GBP278.2 million the prior year.
B&M said sales were boosted by the acquisition of German discount retailer JA Woll Handels in April, and strong sales growth in its UK business where it saw sales increase by 23% to GBP341.2 million, and like-for-like sales grow by 6%.
"Our like-for-like performance was driven by our strong product offering, growth in the average customer transaction value and the late Easter," said Chief Executive Simon Arora in a statement.
The group currently operates around 380 stores in the UK under the B&M Bargain and B&M Homestore brands, and 49 stores in Germany operating under the JA Woll and Hafu brands.
"The UK business has continued to grow sales well reflecting a strong like-for-like performance and the new store opening programme, with a net seven new stores opened in the quarter as planned," the company said in a statement.
Chief Executive Simon Arora said the business is currently focused on delivering its important Autumn/Winter season and its on-going new store programme, while the JA Woll business has made good progress on accessing the group's Far East supply base for its 2015 ranges.
The company is owned by private equity firm Clayton, Dubilier & Rice and the Arora family, and is chaired by former Tesco PLC Chief Executive Terry Leahy.
B&M shares were up 0.6% at 280.00 pence Monday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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