B&M European Value Retail (BME) Q1 2026 TU earnings summary

Executive summary

• Group revenue rose 4.4% year-over-year to £1.4 billion for Q1 FY2026, driven by new store openings and positive like-for-like sales in the UK and France.

• New CEO with extensive retail and discount experience joined, focusing on strengthening customer proposition and sustainable growth in the UK and Europe.

• Early assessment highlights solid business fundamentals, strong operational efficiency, and opportunities for commercial and in-store improvements.

• Emphasis on evolving the business model through operational enhancements rather than radical changes.

Financial highlights

• Group revenues for Q1 FY2026 rose 4.4% year-over-year to £1.4 billion, with B&M UK revenue up 4.7% to £1.1 billion and B&M France revenue up 7.6% to £136 million.

• B&M UK like-for-like sales increased 1.3%, aided by favorable weather and Easter timing.

• B&M France achieved 1.1% like-for-like sales growth, with four new stores opened year-to-date.

• Heron Foods revenue decreased 0.4% but remains significantly more profitable than three years ago; two new stores opened this year.

• Over £1 billion returned to shareholders in the past three years.

Outlook and guidance

• Trading gross margin declined in Q1 due to lower-margin seasonal buys, but margins are expected to improve in H2 as new, higher-margin stock flows through and freight/FX rates benefit costs.

• Full-year profit guidance will be provided with half-year results in November 2025, after the Spring/Summer trading season.

• Comprehensive business improvement plan to be shared at the H1 update.

• Management aims to sharpen commercial and operational execution, focusing on value and market position amid challenging economic conditions.