Shares in B&M European Value Retail closed 21% higher on Thursday, 12 November 2026, after the discount retailer reported first-half profit well ahead of forecasts and a return to sales growth in the UK. The shares closed at 337.4p, up 58.4p on Wednesday's close of 279p, after rising as much as 19.5% in early trading.

The rally capped a strong year for the FTSE 250 retailer, whose shares have now roughly doubled since the start of 2026. Investors welcomed evidence that chief executive Tjeerd Jegen's turnaround plan, launched in October 2025, is starting to deliver.

Profit well ahead of forecasts

B&M reported group revenue of 2.85 billion pounds for the 26 weeks to 26 September 2026, up 3.6% on a year earlier and ahead of the 2.83 billion-pound consensus. Adjusted pre-tax profit rose 16.6% to 121 million pounds, from 103 million pounds a year earlier, beating the 87 million-pound consensus by a wide margin.

Statutory pre-tax profit rose 53.7% to 115 million pounds, from 75 million pounds, helped by lower adjusting charges as well as the stronger underlying result. Adjusted earnings before interest, tax, depreciation and amortisation rose 6.0% to 203 million pounds, also ahead of the 184 million-pound consensus, while adjusted diluted earnings per share rose 24% to 8.9p, above the 6.5p expected by analysts.

UK sales return to growth

The most encouraging part of the update was the UK performance. B&M UK total sales grew 2.4%, with like-for-like sales up 0.4% for the half, including 3.2% like-for-like growth in the second quarter, driven by general merchandise and an improved performance in fast-moving consumer goods.

B&M France was the group's strongest business, with revenue up 13.7% to 319 million pounds and like-for-like sales up 5.9%. Heron Foods also returned to like-for-like growth. At the half-year end, the group operated 797 B&M stores in the UK, 339 Heron Foods and B&M Express outlets, and 156 stores in France.

Cash, dividend and outlook

Post-tax free cash flow more than doubled to 132 million pounds, from 51 million pounds a year earlier, reflecting higher cash profit and the timing of working capital and capital spending. The interim dividend was raised to 3.6p per share, from 3.5p, and will be paid on 18 December 2026 to shareholders on the register at the close of business on 20 November.

For the first time, B&M gave full-year guidance, forecasting adjusted earnings before interest, tax, depreciation and amortisation of between 450 million and 500 million pounds, compared with 459 million pounds in the previous financial year. Adjusted pre-tax profit is expected to reach between 280 million and 330 million pounds, against 284 million pounds last year.

Jegen said the group was restoring profitability by re-establishing UK like-for-like sales growth and improving its UK category margin, under its Back to B&M Basics strategy of sharper prices, better availability and simpler ranges. With around 7% of the company's shares on loan to short sellers at the end of October, according to Sharesify, the scale of Thursday's rise may also have been amplified by short sellers buying back stock. This article reports market data and is not financial advice.