 confirmed on Thursday that its revenue grew by 3.1% during Q1 on a constant currency basis.){kind=link}
Seven 7 new B&M UK stores opened during the first quarter while four closed
B&M (LON:BME) confirmed on Thursday that its revenue grew by 3.1% during Q1 on a constant currency basis.
The variety store company delivered two-year like-for-like revenue growth of 21.3% compared to pre-pandemic levels of FY20. On a one-year basis, like-for-like revenues were down by 4.4%.
Seven new B&M UK stores opened during the first quarter, while four closed.
Sales were up and down throughout Q1, supported by a boost in demand for gardening products, which aided sales at the end of the last financial quarter and the beginning of the new one.
Amisha Chohan, equity research analyst at Quilter Cheviot commented on the ‘natural’ decline in B&M’s sales.
“As an essential retailer, B&M was a standout winner from the Covid-19 pandemic, with group EBITDA up 83% to £626m,” said Chohan.
“Q1 UK like-for-like sales fell by 4.4%, compared with the 33% growth last year, but this isn’t really too surprising given the tough comparators and the fact that the economic reopening will spread demand across the retail sector and particularly to those places that have been closed recently.”
“B&M’s first quarter revenues suffered from a pull-forward of demand for gardening and outdoor products, and into this quarter revenue in this area has taken a hit due to the poor weather. The wet weather in June is believed to have reduced like-for-like sales by 12%.”
“That said, B&M’s discounter business model is still appealing, and it has retained new customers made during the lockdowns. However, as a Covid winner, it is only natural that earnings will fall after such a successful year.”
B&M European Value Retail share price is down by 2.91% on Thursday to 560.80p.