B&M shares soar after profit outlook upped
Discount retailer B&M Bargains said it expects profits to be higher than anticipated after strong sales of seasonal goods.
In a trading update on Wednesday morning, the group said gross margins had been stronger than originally predicted for the half year ending September 25 2021.
The retailer now expects adjusted EBITDA to be in the range of £275m to £285m for the 26 week period to September 25.
It estimated that adjusted EBITDA was currently approximately £235m after particularly strong sales of general merchandise and seasonal products.
Strong sales meant the retailer had not marked down masses of items at the end of seasons.
Shares in the variety goods retailer soared after the announcement and were up 6.53 per cent on Wednesday afternoon at 574p.
B&M said group revenue year to date had been broadly in line with market expectations.
However, the retailer warned “trading patterns and strength of customer demand remain highly uncertain” for the rest of the financial year, despite the group being well positioned for the run up to Christmas.