B&M European Value Retail (LSE:BME), the UK's leading variety goods value retailer, reported group revenue growth of 2% for the first quarter of its 2027 financial year, the 13 weeks to 27 June.
The increase, 1.7% at constant currency, was driven by a 14.6% revenue jump at B&M France and a 2.8% rise at Heron Foods, offsetting a weaker UK performance.
B&M UK revenue rose just 0.3%, with like-for-like sales down 2.3% after a slower start to the garden season compared with unusually warm weather last April, when like-for-like sales grew 10.9%.
General merchandise like-for-like sales returned to growth in May and June, though this was offset by a decline in FMCG sales, where UK trading margin stayed below prior-year levels as the group continued to invest in price.
Chief executive Tjeerd Jegen said the French business showed "how consistent execution of the B&M model can drive higher footfall and positive sales in a competitive retail market", with like-for-like sales there accelerating to 5.3% from 1.7% in the fourth quarter, aided by new store openings and a mid-single-digit rise in transaction volumes.
Heron Foods like-for-like sales rose 2.6%, helped by strong Easter trading and clearance activity.
The group's UK general merchandise margin improved year-on-year, a trend management expects to continue as autumn and winter ranges land, alongside its SKU rationalisation programme, due to be 75% complete across UK stores by the end of July.
Atheeq Akbar will join as chief financial officer in February 2027, succeeding interim CFO Peter Waterhouse.
Going back to basics is 'sensible'
Shore Capital Markets analyst David Hughes says management's Back-to-Basics turnaround plan looks sensible, but softer UK like-for-like sales mean progress remains unproven.
The note keeps a Hold rating with a 215p price target and says it will await clearer evidence of sustained UK LFL improvement before revising its view.
He flags an uncertain consumer backdrop and intense UK grocery competition as material headwinds to a faster recovery.