Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com -- Shares of B&M European Value Retail SA (LON:BMEB) fell over 8% on Monday following the announcement of chief executive Alex Russo’s impending retirement and a downward revision of the company’s profit forecast.
The discount retailer now anticipates its fiscal year 2025 adjusted EBITDA to range between £605 million and £625 million, a decrease from the previously projected £620 million to £650 million.
This adjustment reflects current trading performance, an uncertain economic outlook, and potential exchange rate volatility affecting stock and creditor valuations.
Alex Russo, who has served as CEO since September 2022 after joining B&M as chief financial officer in 2020, will retire at the end of April 2025.
The company is in advanced stages of recruiting a new CEO with the assistance of an executive search firm.
The profit warning and leadership change come as B&M, which operates over 1,100 stores across the UK and France, faces challenges in a competitive retail market.
Other major British retailers, such as Marks & Spencer (OTC:MAKSY) and Next (LON:NXT), have also cautioned about a difficult year ahead due to rising inflation and increased operational costs.
In response to Russo’s retirement, B&M’s remuneration committee has exercised its discretion to allow him eligibility for the annual bonus for the current financial year and to retain his awards under the company’s share plans.