B&M European Value Retail SA (LSE:BME) hiked its profit guidance in an unscheduled trading update on Wednesday.
The FTSE 100-listed discounter, which sells food lines alongside the household goods, said UK profit margins in the half year ending 25 September have been stronger than anticipated, while revenues have been broadly in line with market expectations.
“Performance of general merchandise and seasonal categories has been particularly encouraging. Sell-through rates in those categories have been high and accordingly end of season markdowns have been limited,” the retailer said.
Directors now expect £275mln to £285mln of underlying earnings (EBITDA) for the first half of its 2022 financial year, compared to an average analyst forecast of roughly £235mln.
Ahead of the 'Golden Quarter' in the run-up to Christmas, B&M said it is “well positioned” but trading patterns and strength of customer demand “remain highly uncertain” for the rest of the financial year.
Back in early July, B&M said the period had got off to a strong start although trading was volatile, with first-quarter revenue up 3.1% year-on-year compared to growth of 27.7% in the preceding 13-week period.