B&M posts better than expected half-year results
The FTSE 100-listed discount retailer B&M Bargains has revealed UK profit margins are now expected to be higher than first thought while revenues have been broadly in line with market expectations.
The news sent shares up nearly 5% within minutes of the announcement, with bosses saying pre-tax profits for the six months to September 25 are likely to be between £275 million and £285 million. City analysts were previously predicting profits of around £235 million.
B&M said: “Whilst Group revenues year to date have been broadly in line with market expectations, gross margins have been stronger than originally anticipated in the B&M UK fascia business.
“Performance of General Merchandise and Seasonal categories has been particularly encouraging. Sell-through rates in those categories have been high and accordingly end-of-season markdowns have been limited.”
Despite the upgrade and predictions that it is well positioned for the Christmas season, the company cautioned that “trading patterns and strength of customer demand remain highly uncertain” for the rest of the year.
