B&M Retail shares sink 15% after second profit warning, CFO to step down

Published 20/10/2025, 08:52
Updated 20/10/2025, 08:54

Investing.com -- B&M European Value Retail S.A. shares sank more than 15% on Monday after the discount retailer issued its second profit warning in less than two weeks, saying it failed to include £7 million of second-quarter freight costs in its cost of goods sold due to a systems error.

The company said the issue has been resolved but revised its fiscal 2026 guidance to reflect the updated figures. Adjusted EBITDA for the year is now expected between £470 million and £520 million, down from the prior range of £510 million to £560 million.

The midpoint of the outlook has been lowered to £495 million from £535 million. B&M also recut its FY26 margin guidance based on the new second-quarter run rate.

Chief financial officer Mike Schmidt will step down from his role, the company said, and a search for his successor has begun.

Jefferies called the update “very poor optics for B&M” and said the announcement “erodes trust further, highlighting potential issues in accounting controls and higher-level analytical review/oversight.”

The brokerage noted that the scale of the downgrade was concerning, stating, “that is before we unpick how a £7m Q2 miss translates into a £40m FY downgrade.”

Jefferies added that it had previously stated “plenty was still required to hit lowered FY26 numbers” and said it retained that view.

B&M said it continues to expect its U.K. business to stabilize EBITDA margin at a low double-digit percentage level in the medium term.

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