B&M European Value Retail (LON:BME) Posts Quarterly Earnings Results

B&M European Value Retail (LON:BME) announced its earnings results on Wednesday. The company reported GBX 16.30 earnings per share for the quarter, Digital Look Earnings reports. B&M European Value Retail had a return on equity of 34.04% and a net margin of 4.39%.The company had revenue of GBX 577.50 billion during the quarter.

Here are the key takeaways from B&M European Value Retail’s conference call:

• B&M reported FY 2026 adjusted EBITDA of GBP 459 million, in line with guidance, but profits were down year over year due to trading margin pressure and cost inflation.
• Cash generation remained strong, with post-tax free cash flow of GBP 321 million and leverage returning to 1.4x, back within the company’s target range.
• The company said its “Back to B&M Basics” program is progressing well, with early signs of improvement in pricing, availability, range rationalization and inventory discipline.
• B&M France remained a standout, delivering 13.4% sales growth, positive like-for-likes in every quarter, and an 11.8% increase in profit to GBP 53 million.
• Management outlined a more balanced FY 2027 capital approach, targeting 25 to 35 new B&M UK openings while also investing selectively in existing stores, with share buybacks only a potential January 2027 decision.

B&M European Value Retail Stock Up 7.6%

Shares of LON BME opened at GBX 210.30 on Thursday. The firm has a market capitalization of £2.11 billion, a PE ratio of 8.51 and a beta of 1.09. The company has a current ratio of 1.26, a quick ratio of 0.38 and a debt-to-equity ratio of 348.52. B&M European Value Retail has a 1 year low of GBX 140 and a 1 year high of GBX 294.60. The firm’s 50-day moving average is GBX 171.36 and its 200-day moving average is GBX 171.61.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on BME shares. Citigroup raised their price objective on shares of B&M European Value Retail from GBX 165 to GBX 180 and gave the company a “neutral” rating in a research report on Thursday, February 5th. Jefferies Financial Group reissued a “hold” rating and set a GBX 165 price target on shares of B&M European Value Retail in a research note on Thursday. Five analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of GBX 206.25.

About B&M European Value Retail

B&M European Value Retail SA operates general merchandise and grocery stores. The company operates a chain of stores under the B&M, Heron Foods, and B&M Express in the United Kingdom; and stores under the B&M brand in France. It also provides property management services. The company was founded in 1978 and is based in Munsbach, Luxembourg.