Discount retailer B&M has lowered its full-year profit guidance despite reporting positive sales momentum in December, as it increases investment in areas such as pricing and stock clearance.
The business said UK like-for-like sales returned to growth, rising 3%, following declines earlier in the quarter.
Early January trading has continued to show a positive trend, supported by strong seasonal sell-through and clearance activity.
However, B&M said deeper investment in price, particularly in FMCG, alongside efforts to reduce SKU (stock-keeping unit) count and clear discontinued lines, would weigh on near-term financial performance.
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The group has also flagged “underperformance” at its Heron Foods business.
As a result, B&M has revised its FY26 adjusted EBITDA guidance to between £440m and £475m, down from its previous range of £470m to £520m.
Chief executive Tjeerd Jegen said: “We entered our Golden Quarter sharper on price to reinforce our value proposition with our customers.”
“As with our pricing actions, these are investments in the long-term strength of B&M, but they do impact near-term financial performance.”
He said the company remained confident its “Back to B&M Basics” programme would restore sustainable like-for-like growth in the UK over the next 12 to 18 months.
Last November, B&M reshuffled its senior management team after reporting a 30% drop in profits for the first half of the year following an accounting error that rocked investor confidence.
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