B&M has delivered robust results under its new chief executive following a challenging 18-month period plagued by supply chain difficulties.
However, shares still tumbled 13% in early trading, weighed down by worries over margin pressures including price deflation and rising costs.
The FTSE 250 retailer announced this morning that total revenue climbed 4.4 per cent to £1.4bn in the 13 weeks to June 28, as reported by .
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"The company's high valuation multiple increases the pressure to deliver on ambitious targets," said Adam Vettese, market analyst for eToro.
"Execution risks around margins and the cost base mean the business needs some more consistent performance and show some adaptability for the shares to track meaningfully higher," Vettese added.
Revenue at B&M's 海角视频 operations increased 4.7 per cent year-on-year to £1.1bn, whilst its French division expanded revenue by 7.6 per cent to £136m and Heron Foods's revenue declined 0.4 per cent to £138m.
B&M has grappled with supply chain disruptions and wage inflation, with a string of disappointing profit updates causing its share price to halve since December 2024.
Competition in the value retail sector is fierce, with wafer-thin profit margins made even thinner by recent increases in national insurance contributions and supply-chain expenses.
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Nevertheless, a series of strategically chosen new store locations, combined with a summer boost from favourable weather and strong seasonal goods sales, has proved beneficial for the company. Nick Sherrard, Managing Director of Label Sessions, said B&M's new CEO Tjeerd Jegen "looks like a lucky general".
Sherrard noted that Jegen is taking the helm of a business that is expanding its presence in the value sector, a market many analysts predict will continue to grow.
Jegen stepped into his role at B&M in May 2025, succeeding interim chief Mike Schmidt.
Reflecting on his initial experiences in the position, Jegen said: "My early days spent listening to and learning from our passionate colleagues and customers have underlined for me the strength of our value-focused model, which is more crucial than ever in the current challenging economic climate.
"While B&M 海角视频's like-for-like sales are growing, I see a significant opportunity... as we move towards and beyond the Golden Quarter."
According to Sherrard, B&M's next hurdle is to ensure its new seasonal customers become regular patrons.
He suggested that to achieve this, B&M needs to consistently introduce new products at appropriate price points for all seasons and weather conditions. He warned that the opening of new stores and summer deals alone won't address medium-term challenges.
"Given the disruption facing competitors right now, if B&M embraces that challenge there is every reason to think we could be seeing a real turnaround at the business," Sherrard added.