B&M slashes profit forecast amid ‘uncertain’ economy as CEO plans to retire
Chief executive Alex Russo said he will step down in April as the retailer issued a profit warning for the current financial year.
B&M has issued a profit warning after trading was hit by an “uncertain economic outlook”, as it also said its chief executive will retire in the coming months.
The London-listed company said profit will only be up to £625 million for the current financial year, down from a previous estimate of up to £650 million.
The lower earnings forecast “reflects the current trading performance of the business, an uncertain economic outlook and the potential impact of exchange rate volatility on the valuation of our stock”, it said.
Retailers have complained of worsening conditions in the UK in recent months, after the Government raised taxes for companies at its last Budget in October.
And shops faced a further setback when sales during the key Christmas period fell compared to the same time in 2023, amid worsening consumer sentiment.
While more recent surveys have pointed to an improvement in footfall in January, particularly for lower-cost retailers like B&M, the latest announcement follows a slew of job cuts across some of the country’s biggest names, including Sainsbury’s and Tesco.
Meanwhile, the company said boss Alex Russo will retire on April 30 after two-and-a-half years at the helm, and said it is looking for a new chief executive.
B&M chairwoman Tiffany Hall said Mr Russo “has increased our store footprint in both the UK and France and driven a relentless focus on high operational standards and low costs”.
Mr Russo joined in 2020, before taking the CEO role in September 2022.
He said the company “has been successfully steered through the pandemic years and is now larger and stronger”.
He added that he is retiring “leaving growing businesses with great potential in both UK and France”.
