B&M sales rebound likely as warm weather and seasonal boost lift demand
Last updated: 22:45 28 May 2025 AEST, First published: 22:40 28 May 2025 AEST
Shares in B&M European Value Retail SA (LSE:BME) could be heading into their June results with some momentum, as recent sales data and dry spring weather suggest a stronger-than-expected start to the new financial year.
Analysts at Citi point to industry data showing that B&M's sales have picked up in recent weeks.
Although these figures, known as till roll data, have not always been a reliable guide, they show a positive trend.
Sales rose 18% in the four weeks to mid-April and a further 2% in the most recent four-week period to 18 May.
That moderation was expected, as comparisons with last year become tougher.
But when combined with a sunny April and an early Easter, Citi believes conditions are in place for sales growth of 7% to 9% in the first quarter of B&M’s 2026 financial year, which ends next March.
One of the standout features has been the continued strength in General Merchandise, everything from homewares to garden furniture, which is selling better than grocery items.
Because these higher-margin categories contribute more to profit, this shift could give earnings a further lift.
B&M reports full-year results on 4 June. Citi is sticking with its positive view on the shares, reiterating its buy rating and arguing that the recent drop in the valuation has been overdone. A return to sales growth would support that case.
