B&M set to slash prices following profit warning
Major homeware retailer to slash prices in bid to boost sales
- Budget retailer B&M has issued a profit warning for the year, attributing the downturn to declining UK sales and soaring operational costs.
- The company reported a 1.1 per cent drop in UK like-for-like sales during its second quarter, projecting half-year underlying earnings to fall by 28 per cent to approximately £198m.
- This financial pressure is compounded by a significant £30m surge in wage costs and a £14m packaging tax.
- B&M now anticipates full-year underlying earnings to be between £510m and £560m, representing a potential 18 per cent decline from the previous year.
- New CEO Tjeerd Jegen acknowledged weak operational execution and stated the company is taking decisive actions, including price cuts and range refocusing, which are expected to take up to 18 months to materialise.