Shares in B&M dropped by over 7% after the firm published what it described as a "positive quarterly like-for-like (LFL) trading performance".

In the first quarter of its 2026 financial year, the retail supermarket saw its group revenue increase by 4.4% year-on-year to just over £1.4bn, following growth from new space and a positive quarterly performance by its UK and French divisions.

B&M UK recorded a 1.3% increase in its LFL sales, totalling £1.13bn in the 13 weeks to 28 June. The group said this result was driven by a good performance in April from its outdoor ranges, assisted by drier weather and the timing of Easter.

However, its brand, Heron Foods, saw its revenue drop by 0.4% year-on-year to £138m.

The latest results come after B&M’s profit fell by 13.2% in the year to 29 March, with the supermarket chain blaming a "challenging UK retail trading environment".

The full-year financial results were also accompanied by the appointment of Tjeerd Jegen as chief executive officer, who purchased £500,000 in B&M shares last month to align himself with shareholder interests.

Jegen stated: "My early days spent listening to and learning from our passionate colleagues and customers have underlined for me the strength of our value-focused model, which is more crucial than ever in the current challenging economic climate.

"While B&M UK's LFL sales are growing, I see a significant opportunity and requirement to sharpen our commercial and operational execution as we move towards and beyond the Golden Quarter."

Looking ahead, the supermarket stated that it recognises that will be sector-wide challenges in the current financial year, including increased minimum wage costs, higher employee national insurance contributions and inflation on input costs.

As a result, B&M will provide its full-year guidance in its half-year results, which will be published on 13 November.

Investment analyst at AJ Bell, Dan Coatsworth, said that the market is "clearly losing patience" with B&M’s ability to deliver meaningful LFL growth.

He concluded: "On the face of it, the company’s latest quarterly update was not a bad way for recently appointed Jegen to kick off his tenure. However, the LFL increase was only modest, and at least some of this could be attributed to the timing of Easter. This annual catalyst for getting shoppers through the tills fell in the first quarter this year but not last.

"There was also a concerning like-for-like decline in B&M’s fast moving consumer goods grocery channel and it faces continuing pressure on margins, particularly in its general merchandise category.

"There was no updated guidance for the full year – investors will have to wait until first-half results in November for that information – but the tenor of this announcement raises the prospect of Jegen seeking to reset expectations to provide him with the room to turn things around for the business."

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