B&M reports strong sales growth after record Christmas trading
B&M saw its UK like-for-like sales grow by 7.2% in its third quarter after sales were boosted by record Christmas trading.
UK sales revenue for the 13 week period increased by 20.7% to £741.4 million while group revenue climbed by 20.5% at constant currency. On an actual currency basis, total sales revenue rose by 21.8% to £789.1 million.
The company said the stronger like-for-like growth was a reflection of a good seasonal product performance, improved in-store standards and increased levels of operational stability in its stores and supply chain.
B&M also benefited from an extra day's trade in the quarter compared with last year which added 1.1% to the headline like-for-like total. This timing benefit will unwind in the fourth quarter.
As a result, the retailer is confident that it will meet market expectations for adjusted EBITDA in the financial year to March 2017.
Simon Arora, B&M chief executive, said: "We have once again demonstrated the strength, relative appeal and popularity of our model at a time of uncertainty for consumers generally and continuing structural change in the retailing sector. We have delivered our best ever Christmas trading and served over 5.5 million customers in a single week in the UK alone as we continue to gain market share. Our German business Jawoll has also performed well and our first steps towards a faster pace of expansion are going to plan.”
At the end of the quarter, B&M’s UK business was trading from a total of 533 stores after opening 14 stores in the last 13 weeks and a net 34 in total during the financial year to date. In Germany Jawoll is now trading from 73 stores following seven new openings in the third quarter.
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