LONDON (Reuters) -B&M, the British discount retailer, reported a fall in underlying sales in its home market in its latest quarter, reflecting a very tough comparison with the same period last year when shoppers stocked-up for a first COVID-19 lockdown.
The FTSE 100 listed group, which sells everything from food to homewares, do-it-yourself and gardening products, said like-for-like revenue at its B&M UK business fell 4.4% in the 13 weeks to June 26, its fiscal first quarter, versus growth of 24.5% in the second half of its 2020-21 year.
Comparing the period to the first quarter two years ago, before the pandemic impacted trading, like-for-like revenue was up 21.3%.
The group, whose full name is B&M European Value Retail, has performed well during the pandemic. Its stores were allowed to stay open through multiple UK lockdowns because they sell some food, and its low prices and out-of-town locations chimed with consumers.
B&M said trading patterns were volatile throughout the quarter, with a pull-forward in gardening demand boosting revenue in the final two weeks of the 2020-21 year and early weeks of 2021-22, and also depressing the subsequent weeks.
It said overall group revenue rose 3.1% in the quarter.
B&M said while it continued to be too early to predict likely revenue and profitability outcomes for 2021-22, the group was on track with its plans for the year and expected the two-year like-for-like measure in the core B&M UK business to remain strong.
Shares in B&M, up 16% so far this year, closed on Wednesday at 577 pence, valuing the business at 5.8 billion pounds ($8 billion).
($1 = 0.7256 pounds)
(Reporting by James Davey; Editing by Alistair Smout)
