B&M European Value Retail SA (LSE:BME) shares tumbled despite a special dividend worth £151 million as sales undershot over the Christmas period.
The value chain said like-for-like revenues from its UK arm dropped by 2.8% in the 13 weeks to 28 December 2024 but had been positive in the last few weeks, a trend that has continued into this year.
Sales overall in its third quarter rose by 2.6% and for the nine months so far by 3.3% with higher volumes of Christmas confectionery, toys and decorations helping the total.
That has helped margins with B&M describing the stock position as ‘clean’ at the end of the period.
B&M said the special dividend of 15p a share reflected its “industry-leading return on capital (in excess of 30%) and strong cash generation every year”.
Alex Russo, chief executive, added: "Our performance across the Golden Quarter reflects disciplined operational execution across our businesses, driving volume and in turn profit growth. “
Russo added that with three quarters of the financial year now complete it has narrowed its underlying profit guidance to a range of £620m to £650m (2024: 52 weeks: £616m / 53 weeks: £629m).
“This is equivalent to group adjusted operating profit of between £590m to £620m,” he said.
Shares fell 8% to 320p.