B&M European Value Retail SA (LSE:BME) is showing signs of a sales rebound, with early first-quarter figures pointing to a return to positive like-for-like growth, according to Citi.
The latest till roll data suggest that UK total sales, including new space, are up around 9% year on year for the first 11 weeks of the current quarter, which ends on 28 June.
That’s ahead of Citi’s own forecast of 8.4% and well above the 6.9% estimated by Visible Alpha.
In the four weeks to 15 June, sales growth picked up notably, with a 10% year-on-year increase, an 8.5 percentage point acceleration compared with the previous four-week period.
Analysts attribute the improvement to strong performance in seasonal and garden categories, helped by better weather and the contribution from new store openings.
Importantly, general merchandise sales are continuing to outperform grocery, a mix that Citi believes could benefit margins.
The broker remains cautious about using Kantar data as a predictor of sales, citing past inaccuracies, but says the recent trends are encouraging.
Investors will now look to B&M's next update for confirmation that the business is back on a firmer growth track.
The shares were 1.2% higher at 279.8p.