Liverpool-based national value retailer B&M cuts its full-year profits forecast despite seeing ‘encouraging’ sales in the run up to Christmas. Tony McDonough reports
Value retail giant B&M cut its full-year profit forecast on Thursday as it continues to implement a turnaround strategy.
B&M operates more than 1,100 stores in the UK and France and operates out of its headquarters and main distribution hub in Speke in south Liverpool. On Wednesday it posted a third quarter trading update for the 13 weeks to December 27, 2025.
Revenue in its main UK business was 1.9% year-on-year to £1.4bn. Like-for-like sales were down 0.6% compared with the same period a year earlier. However there was a rally in December with like-for-like sales up 3%.
There was also what it described as a “financial underperformance” at its frozen goods chain Heron Foods, where like-for-like sales in the third quarter fell 0.1%.
In the statement to the stock exchange, B&M said: “We are revising our financial guidance downwards and now expect full year group adjusted EBITDA (pre-IFRS 16) to be between £440m to £475m, versus our previous guidance of £470m to £520m.
“The downward movement in range is driven by ongoing investments in pricing and clearance, improvements in stock quality and the financial underperformance of Heron Foods, where we continue to review and reposition our customer offer.
“We remain confident the actions we are taking can restore sustainable LFL growth at B&M UK over the next 12 to 18 months, which is an essential foundation of the group’s future growth.”
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In October 2025 B&M revealed a sharp fall in profits for the first half of its fiscal year, to September 27, falling to £198m from £274m in the previous year.
B&M’s recent sales performance is in contrast to that of its main high street value rival Home Bargains, also based in Liverpool. At the beginning of January it revealed an 8% rise in annual sales to £4.5bn with pre-tax profits up 11% to £505m.