By Yamini Kalia and Rishab Shaju
(Reuters) -British discount retailer B&M reported on Thursday a weak start to the key Christmas quarter, sending its shares down to a record low, though its CEO hopes a strong position in festive decorations and gifts can improve its performance.
The company also appointed experienced finance executive Helen Cowing as its interim finance director, a month after it disclosed an accounting error that led to a profit warning and the departure of its previous finance chief.
CEO Tjeerd Jegen, five months into the role, has already outlined a turnaround strategy focused on sharpening pricing and streamlining inventory to address falling sales, inconsistent pricing and overly complex product ranges.
“The golden quarter, the big peak of trade, is still to come … The strength of B&M is really with our Christmas decorations, Christmas gifts, all across foods and non-foods,” Jegen told Reuters on Thursday.
PROFITS UNDER PRESSURE
B&M sells everything from garden furniture and electrical items to toys and food at its roughly 1,300 stores globally.
Jegen said the company aimed to undercut full-price supermarkets and was exploring an online channel to tap into social media-driven shopping.
However, it said UK like-for-like sales were at the lower end of its forecast range at the start of its fiscal third quarter. The range spans a low-single-digit percentage increase to a low-single-digit decline.
“Change is clearly happening at B&M, but not quickly enough to rescue current trading,” Jefferies analysts said.
At 1240 GMT, B&M shares were down 0.6% at 163.95 pence, after earlier falling as much as 5.1% to 155.6 pence.
Cowing has previously worked as chief finance officer at transport operator Mobico, European coffee services provider Selecta, and fashion retailer FatFace.
B&M said its adjusted operating profit dropped 31.5% in the six months ended September 27 to 177 million pounds ($238 million).
($1 = 0.7451 pounds)
(Reporting by Rishab Shaju and Yamini Kalia in Bengaluru. Editing by Emelia Sithole-Matarise and Mark Potter)
