B&M has reported an improved end to a weak Christmas trading period but has cut its full-year profit guidance due to increased investment in pricing, clearance, and operational changes.
In its Q3 FY26 trading update for the 13 weeks ending 27 December 2025, B&M reported that UK like-for-like sales grew by 3% in December, following low single-digit declines in October and November. This positive trend has continued into early January.
Broader market context
This late improvement occurred amid challenging conditions for the retail sector. High street footfall fell year-on-year in December as consumers remained cautious – with even discount chains such as B&M feeling the impact.
However, for the full third quarter, B&M UK achieved total revenue growth of 1.9%, though like-for-like sales declined by 0.6%. Seasonal Grocery, Toys, Giftware, and Christmas ranges performed strongly late in the quarter, supported by increased clearance activity.
At group level, Q3 revenue grew 2.9% year-on-year, with year‑to‑date growth of 3.6%.
Profit guidance revised downward
Despite improved trading momentum, B&M has lowered its full-year adjusted EBITDA (pre-IFRS 16) guidance to between £440 million and £475 million, down from the previous range of £470 million to £520 million. The company attributed this to increased price investment in FMCG, accelerated clearance of discontinued lines, and continued underperformance at Heron Foods.
The weak festive season follows a turbulent period for B&M. The company has been restructuring since October, when the finance chief was replaced after an accounting error led to two profit warnings within two weeks. B&M discovered that £7 million in overseas freight costs were not “correctly recognised in cost of goods sold” following an operating system update. According to the Guardian, the FTSE 250-listed company’s shares lost nearly 50% of their value last year.
Chief Executive Tjeerd Jegen stated that the group’s “Back to B&M Basics” programme – its internal turnaround and simplification initiative – is “necessary to rebuild the long-term value of the business,” despite the impact on near-term profitability. He added that these actions are expected to restore sustainable UK like-for-like growth over the next 12 to 18 months.
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