B&M has seen its share price fall by over 9% in early trading, after the firm lowered its EBITDA expectations for the current financial year.

The value supermarket group, which operates the B&M and Heron Foods brands in the UK and France, said that as a result of the "current trading performance of the business" and an "uncertain economic outlook", it now expects its EBITDA for the 2025 financial year to be in the range of £605m to £625m.

This is a reduction from the range of £620m to £650m set out in B&M’s Q3 results.

The figures come as the firm’s chief executive officer (CEO), Alex Russo, announced his intention to retire from the role and as director of the company from 30 April. The board said it is in the "advanced stages of a recruitment process" to appoint a replacement for Russo and will provide an update in due course.

Chair of the board, Tiffany Hall, said: "I would like to thank Alex for his commitment, energy, dedication and hard work since joining the business in 2020 and, in particular, since becoming CEO in September 2022.

"Alex has increased our store footprint in both UK and France and driven a relentless focus on high operational standards and low costs, enabling the company to provide great products and everyday low prices to our customers whilst generating continued strong cash returns for our shareholders. We wish him well for the future."

However, analysts have questioned whether this is a retirement, or whether there is more going on behind the scenes at B&M.

Investment director at AJ Bell, Russ Mould, stated: "The market has lost faith in the business amid a slowdown in growth over multiple consecutive quarters. Someone had to take the blame and it’s inevitable that the CEO falls on their sword. Russo’s exit is framed as retirement, yet the lack of a successor and a mere two-month lead time until departure imply a different story.

"The energy has disappeared from B&M precisely at a time when it should have been thriving. The discount retail sector is highly competitive and B&M needs to do something different to get back on top.

"As a value retailer, B&M should have been hoovering up new customers left, right and centre as they trade down from more expensive shops. It should have also enjoyed a purple patch as lower income households rely on the brand for affordable goods. Instead, the wheels seem to have come off the wagon. It suggests that Russo was too aggressive with earnings guidance and committed the cardinal sin of over-promising and under-delivering, and/or marketing tactics haven’t been good enough to convince shoppers they need to choose B&M."

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