Value retailer B&M posted flat like-for-likes in its first quarter but new store openings have boosted its total sales.
The retailer said it had a slow start to the quarter, which runs to June 25, due to unseasonable weather and the timing of Easter, however, current trading was “stable”.
Group sales jumped 21.5% to £554.8m over the quarter. UK revenue rose 21.3% and sales at its German chain Jawoll surged 23.5% to £46.7m.
B&M has been on an expansion drive and opened 12 UK stores and 5 in Germany over the quarter. It plans to open 50 stores in UK and 19 in Germany. The retailer, which trades from 511 UK stores, plans to build its portfolio to 850 shops.
B&M chief executive Simon Arora (above) said its “robust and compelling retail business model” helped it grow during a “highly competitive backdrop”.
“We have a well-defined and clear strategy for further growth and for B&M it remains business as usual despite broader general economic uncertainty. Our outstanding value for money proposition to customers leaves us well-placed to continue to win market share,” he said.
B&M said it was on course to achieve market consensus profit expectations for its current financial year.
The retailer said it had “satisfactory currency hedging” in place until the end of Christmas 2017 but warned that ongoing exchange rate volatility could impact gross margin in its 2018 financial year, until the UK returned to more stable general economic conditions.