B&M European Value Retail (LON:BME) Announces Quarterly Earnings Results

B&M European Value Retail (LON:BME) issued its quarterly earnings data on Thursday. The company reported GBX 8.90 earnings per share for the quarter, Digital Look Earnings reports. The business had revenue of GBX 284.80 billion for the quarter. B&M European Value Retail had a return on equity of 21.74% and a net margin of 2.84%.

Here are the key takeaways from B&M European Value Retail’s conference call:

• Positive sentiment: B&M UK returned to like-for-like growth, up 3.2% in Q2, with FMCG and General Merchandise both positive in Q3. UK trading gross margin improved by 94 basis points, supported by stronger General Merchandise margins and lower shrinkage, though cost pressures kept EBITDA margin broadly stable.
• Neutral sentiment: Management introduced FY2027 guidance of £450 million–£500 million adjusted EBITDA, compared with £459 million last year. Wage, estate and supply-chain costs remain a headwind, while the company said it is pursuing cost reductions.
• Positive sentiment: B&M France remained the standout, with H1 like-for-like growth of 5.9%, 23 consecutive quarters of growth and a 140-basis-point year-over-year gain in French discount-market share. Heron also sustained positive like-for-likes, up 2.9% in H1.
• Positive sentiment: Early results from the Wigan 2.0 store and other format tests are encouraging, with higher sales driven mainly by transaction growth and cash margin growing faster than sales. Broader rollout remains dependent on further testing of performance and investment returns.
• Negative sentiment: B&M UK expects to open 15–20 gross new stores in FY2027, below its previous 25–35 target, citing a lack of suitable sites meeting investment thresholds. Management expects to return to 25–35 openings in FY2028.

B&M European Value Retail Stock Performance

BME traded up GBX 58.40 during trading on Thursday, hitting GBX 337.40. 20,960,441 shares of the company traded hands, compared to its average volume of 37,923,082. The firm has a market cap of £3.39 billion, a P/E ratio of 20.70 and a beta of 1.10. The stock’s fifty day moving average is GBX 258.34 and its 200 day moving average is GBX 208.24. The company has a quick ratio of 0.38, a current ratio of 1.42 and a debt-to-equity ratio of 306.52. B&M European Value Retail has a one year low of GBX 140 and a one year high of GBX 338.60.

Analysts Set New Price Targets

Several brokerages have recently commented on BME. Shore Capital Group reiterated a “hold” rating and issued a GBX 215 target price on shares of B&M European Value Retail in a report on Wednesday, July 15th. Berenberg Bank increased their price objective on shares of B&M European Value Retail from GBX 290 to GBX 340 and gave the company a “buy” rating in a research note on Tuesday, October 27th. Finally, Jefferies Financial Group lifted their target price on shares of B&M European Value Retail from GBX 180 to GBX 240 and gave the stock a “hold” rating in a research report on Thursday, October 22nd. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of GBX 218.75.

Insiders Place Their Bets

In other news, insider Tjeerd Jegen acquired 146,910 shares of the company’s stock in a transaction that occurred on Monday, September 7th. The shares were acquired at an average price of GBX 233 per share, for a total transaction of £342,300.30. 22.81% of the stock is currently owned by insiders.

B&M European Value Retail Company Profile

B&M European Value Retail S.A. operates general merchandise and grocery stores. The company operates a chain of stores under the B&M, Heron Foods, and B&M Express in the United Kingdom; and stores under the B&M brand in France. It also provides property management services. The company was founded in 1978 and is based in Munsbach, Luxembourg.