Highlights

  • Group revenue rose 3.6% year-on-year YTD, while Q3 revenue increased 2.9% year-on-year.
  • FY26 adjusted EBITDA guidance was revised to GBP 440m–GBP 475m from GBP 470m–GBP 520m.
  • December LFL sales in B&M UK turned positive at 3.0%, supported by seasonal demand and clearance activity.

B&M European Value Retail S.A. (LSE:BME) has released its trading update for the third quarter of FY26, reporting revenue growth for both the quarter and year-to-date period, alongside revised financial guidance. The update covers the 13-week period from 28 September 2025 to 27 December 2025 and outlines sales performance across key markets, margin trends, operational initiatives, and updated EBITDA expectations.

Group Revenue Records Year-to-Date Growth

For the year-to-date period, B&M reported group revenue growth of 3.6% year-on-year, or 3.3% on a constant currency basis. During Q3 FY26, group revenue increased 2.9% year-on-year, equivalent to 2.6% in constant currency terms. The performance was supported by improved trading in December following softer trends earlier in the quarter.

UK Trading Improves in December

B&M UK recorded 1.9% total revenue growth during Q3 FY26, while like-for-like (LFL) sales declined 0.6% for the quarter. The company reported positive LFL sales growth of 3.0% in December, following low single-digit LFL declines in October and November. Early January trading continued to show positive LFL momentum, supported by customer response to clearance activity across seasonal categories and discontinued product lines.

Seasonal Grocery, Giftware, Toys and Christmas ranges contributed to December’s positive LFL performance, with both FMCG and General Merchandise categories achieving good sell-through rates during the quarter.

France and Heron Foods Performance

B&M France delivered 8.5% total revenue growth in Q3 FY26, alongside 0.4% LFL revenue growth, while operating in a competitive retail environment.

Heron Foods recorded 1.4% total revenue growth for the quarter, with LFL sales declining 0.1%. The company stated that Heron Foods’ profit performance remains below expectations, prompting a further review of its customer proposition.

Margins, Operations and IT Review

B&M UK gross margin remained below prior-year levels in Q3 as the group continued to invest in pricing within the FMCG segment. This trend is expected to continue into Q4 as clearance of discontinued lines is broadened in preparation for FY27.

The “Back to B&M Basics” programme progressed during the quarter, with FMCG category pilots to reduce product line counts informing further trials scheduled for February 2026. A full UK rollout is planned for Q1 FY27. Stock availability trials continued, supporting adjustments to stock records and clearance initiatives.

The group also confirmed completion of a third-party review by EY into IT systems and balance sheet controls related to overseas freight cost issues, with implementation of recommendations currently underway.

Revised FY26 Guidance

B&M revised its FY26 group adjusted EBITDA (pre-IFRS 16) guidance to a range of GBP 440 million to GBP 475 million, compared with previous guidance of GBP 470 million to GBP 520 million. The revision reflects ongoing pricing investments, clearance activity, stock quality initiatives and the performance of Heron Foods.

Share Performance

As of 22 January 2026, B&M shares were trading at GBX 174.37, up 0.73% on the day. The stock is down 45.27% over the past year.