B&M European Value Retail (LON:BME) Issues Earnings Results

B&M European Value Retail (LON:BME) announced its quarterly earnings results on Wednesday. The company reported GBX 16.30 EPS for the quarter, Digital Look Earnings reports. The firm had revenue of GBX 577.50 billion during the quarter. B&M European Value Retail had a net margin of 2.84% and a return on equity of 21.74%.

Here are the key takeaways from B&M European Value Retail’s conference call:

• B&M reported FY 2026 adjusted EBITDA of GBP 459 million, in line with guidance, but profits were down year over year due to trading margin pressure and cost inflation.
• Cash generation remained strong, with post-tax free cash flow of GBP 321 million and leverage returning to 1.4x, back within the company’s target range.
• The company said its “Back to B&M Basics” program is progressing well, with early signs of improvement in pricing, availability, range rationalization and inventory discipline.
• B&M France remained a standout, delivering 13.4% sales growth, positive like-for-likes in every quarter, and an 11.8% increase in profit to GBP 53 million.
• Management outlined a more balanced FY 2027 capital approach, targeting 25 to 35 new B&M UK openings while also investing selectively in existing stores, with share buybacks only a potential January 2027 decision.

B&M European Value Retail Stock Performance

LON:BME opened at GBX 208.60 on Friday. B&M European Value Retail has a 1 year low of GBX 140 and a 1 year high of GBX 294.60. The firm has a 50 day moving average of GBX 172.45 and a 200-day moving average of GBX 171.96. The company has a current ratio of 1.42, a quick ratio of 0.38 and a debt-to-equity ratio of 306.52. The stock has a market capitalization of £2.10 billion, a P/E ratio of 12.80 and a beta of 1.09.

Wall Street Analyst Weigh In

A number of brokerages have commented on BME. Citigroup raised their price target on shares of B&M European Value Retail from GBX 165 to GBX 180 and gave the stock a “neutral” rating in a research note on Thursday, February 5th. Jefferies Financial Group restated a “hold” rating and set a GBX 165 price target on shares of B&M European Value Retail in a research note on Thursday. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of GBX 206.25.

About B&M European Value Retail

B&M European Value Retail SA operates general merchandise and grocery stores. The company operates a chain of stores under the B&M, Heron Foods, and B&M Express in the United Kingdom; and stores under the B&M brand in France. It also provides property management services. The company was founded in 1978 and is based in Munsbach, Luxembourg.