B&M European Value Retail's (LSE:BME) interim update on Thursday 9 November is set to provide investors with more information on the retailer’s purchase of a heap of Wilko’s stores.
Following Wilko’s collapse into administration and subsequent sale by administrator PwC earlier this year, B&M emerged as one of several buyers for parts of the collapsed firm.
Though B&M said it had agreed to purchase 51 former Wilko properties in September, details were vague.
According to B&M, the chunk of Wilko’s store estate was bought for a maximum of £13 million, which was funded through existing cash reserves.
Details such as the timing of these new store openings will therefore come in next Thursday’s update, B&M said previously.
Including the former Wilko stores should boost first-half earnings per share "modestly", analysts at Barclays said.
B&M had penned double-digit revenue growth during the first quarter of the year, including in its UK business, with a strong focus having been placed on price as pockets remain squeezed, according to chief executive Alex Russo.
According to Liberum analysts, B&M has benefitted from this simple strategy of ensuring good value product availability, particularly since the pandemic.
Given the company's prices have consistently remained below those of its rivals, Liberum added that an end to strong trading by B&M looked unlikely anytime soon.
Shares are up 25% over the year as a result, to trade at 532.80p on Friday morning.
Barclays forecasts second-quarter core LFL sales to slow to 3.5% from 9.2% in the first quarter and first-half EBITDA to rise 15% to around £267 million.