B&M Q1 sales rise 2% as France offsets weaker UK trading

B&M's first-quarter performance at a glance

B&M European Value Retail reported Group revenue of £1.43 billion for the 13 weeks to 27 June 2026, an increase of 2.0% year on year. At constant currency, which removes the effect of exchange-rate movements, growth was 1.7%.

The headline increase is positive, but the detail is mixed. Strong performances from B&M France and Heron Foods offset weaker like-for-like sales at the much larger B&M UK division.

Like-for-like sales compare revenue from established stores, excluding the effect of newer openings. This helps investors judge whether growth is coming from existing shops rather than simply adding more locations.

Division	Q1 FY27 revenue	Revenue growth	Like-for-like growth
B&M UK	£1.14 billion	0.3%	-2.3%
B&M France	£156 million	14.6%	5.3%
Heron Foods	£142 million	2.8%	2.6%
Group	£1.43 billion	2.0%	Not disclosed

Why did B&M UK like-for-like sales fall?

B&M UK delivered revenue growth of just 0.3%, while like-for-like sales declined by 2.3%.

Management had expected a decline because the group was comparing this quarter with an unusually strong garden season last year. Early warm and dry weather helped produce 10.9% like-for-like growth in April 2025, creating a demanding comparison for the latest period.

The first quarter is also B&M's most seasonally variable sales period. Garden and outdoor products can perform very differently depending on the timing and quality of the weather.

There were some encouraging signs beneath the quarterly decline. General merchandise like-for-like sales returned to growth during May and June, although this was offset by lower sales of fast-moving consumer goods, or FMCG. This category includes frequently purchased items such as food, drink and household products.

Management also said that disciplined inventory management and effective clearance activity left garden and outdoor stock at normal seasonal levels as the division exited the season.

That matters because weak seasonal trading can leave a retailer carrying unwanted products. Clearing excess stock may require heavier discounting, which can damage margins and tie up cash. Ending the season with normal inventory reduces this particular risk.

Margins offer a mixed picture

B&M UK continued to invest in FMCG prices during the quarter as it competed in a challenging marketplace. As expected, the division's FMCG trading margin remained below the previous year's level.

This suggests B&M is accepting some near-term margin pressure as it works to improve the competitiveness of its grocery and household ranges. The strategy may help customer perceptions and sales volumes over time, but the announcement does not show evidence of a like-for-like FMCG sales recovery yet.

The picture was more encouraging in general merchandise. Its UK trading margin was higher than last year, continuing the improvement reported alongside the FY26 results.

Management expects this year-on-year progress to continue as the autumn and winter collections reach stores. It also highlighted its ongoing focus on mitigating costs as a reason for confidence in rebuilding Group profitability over time.

No numerical profit, margin or full-year guidance was disclosed in this trading statement. Investors therefore have management's directional confidence, but not a quantified target against which to measure progress.

France was the standout performer

B&M France produced the strongest result within the Group, with revenue rising 14.6% to £156 million. Growth was 12.3% on a constant-currency basis.

Like-for-like sales increased by 5.3%, accelerating from 1.7% in the fourth quarter of FY26. New store openings also contributed to the division's total revenue growth.

Management attributed the result to strong retail execution, effective merchandising and the attractiveness of the customer offer. Like-for-like transaction volumes rose by a mid-single-digit percentage, indicating that increased customer visits were an important driver rather than growth relying solely on higher average spending.

The French operation remains considerably smaller than B&M UK, so even rapid growth cannot fully transform the Group result by itself. Even so, its performance provides evidence that the B&M retail model can deliver positive like-for-like sales and higher footfall in a competitive market.

Heron Foods returns to positive like-for-like growth

Heron Foods also had a solid quarter. Revenue rose 2.8% to £142 million, with like-for-like sales up 2.6%.

B&M credited successful Easter trading, clearance contributions and encouraging results from ongoing range reviews. Sales remained positive across the quarter.

Heron Foods and B&M France have less exposure to garden and outdoor products than B&M UK. Their quarterly results were therefore less affected by the seasonal comparison that weighed on the Group's core UK chain.

Progress on Back to B&M Basics

The key operational programme is the company's Back to B&M Basics plan, which is intended to support a recovery in B&M UK's like-for-like FMCG sales.

One element is SKU rationalisation. A SKU, or stock-keeping unit, represents an individual product line. Rationalisation means removing weaker or duplicative products to create a sharper, more productive range.

B&M said this work was well underway across its UK stores and would be 75% complete by the end of July 2026.

The potential benefit is a clearer customer offer, simpler store operations and better inventory productivity. The risk is that reducing ranges does not automatically produce stronger sales. Investors will want to see whether the work translates into better FMCG like-for-like performance in future updates.

What should investors take from the update?

The most reassuring element is that the weak UK like-for-like figure was partly linked to a particularly tough weather-driven comparison. The return to general merchandise growth in May and June, improved general merchandise margins and normal seasonal inventory levels also offer signs of operational progress.

France was clearly strong, while Heron Foods returned to positive like-for-like growth. These performances provided useful support while the core UK business worked through softer trading.

However, B&M UK remains by far the largest division, generating £1.14 billion of the Group's £1.43 billion quarterly revenue. Its 2.3% like-for-like decline therefore deserves more attention than the 2.0% Group revenue growth headline might suggest.

The continued FMCG sales decline and lower year-on-year FMCG margin show that the UK recovery is not complete. Price investment, range rationalisation and cost mitigation may help, but the financial benefit has not yet been quantified.

B&M operated 797 UK B&M stores, 340 Heron Foods and B&M Express stores, and 151 stores in France at the quarter end. Future updates will need to show that growth from this store base is being matched by improved underlying sales and profitability in the core UK operation.

The quarter looks more like an early progress report than a completed turnaround. France and Heron Foods delivered tangible growth, but B&M UK's FMCG performance remains the central issue for investors to watch.