B&M European Value Retail SA (LSE:BME)’s shorter than usual update on the three months to December might well leave investors asking questions, according to Shore Cap analysts.
Though the FTSE 100-listed retailer unveiled group revenue growth of 5.0% year-on-year for the period on Tuesday, a lack of like-for-like sales information caught the eyes of analysts at the bank.
“Indeed, unlike the prior year update, lesser like-for-like sales information is given across the firm,” Shore Cap said in a note.
This “contraction of like-for-like information may not go down well with the group’s shareholders,” analysts added.
B&M did reveal third quarter like-for-like sales figures for its UK operations, which were up 1.2% on tough comparatives. However, this left Shore Cap questioning what “core chain like-for-like sales” were to 23 December as other like-for-like comparatives being left out.
Shore Cap did acknowledge such “strong comparatives,” with last year’s third quarter like-for-likes sales sitting 6.4% higher in the UK, adding Tuesday’s update was unlikely to “positively set alight” investor expectations.
UBS analysts noted that questions around slowing like-for-like growth marked a “modest negative”, given expectations of an acceleration towards the end of the period.
B&M’s declaration of a special 20p per share dividend and unchanged adjusted pre-tax guidance of £620 million to £630 million “are helpful,” the bank added.
Shares climbed 0.8% to 566.20p.