B&M European Value Retail SA on Monday said its chief financial officer was stepping down as it lowered profit guidance after identifying an accounting error.
Shares in the Luxembourg-based variety goods store chain in UK and France were 16% lower at 183.00 pence each in London on Monday morning.
The FTSE 250-listing now expects adjusted earnings before interest, tax, depreciation and amortisation between £470 million to £520 million for the year to March 28, down from £510 million to £560 million previously. Its adjusted Ebitda in financial 2025 amounted to £620 million.
For the first half of the financial year, B&M expects adjusted Ebitda of £191 million, compared to the previous guidance of around £198 million.
It’s the latest mishap for the retailer, which was relegated from the FTSE 100 at the end of 2024, and lost its previous chief executive Alex Russo after a profit warning in February. Shares have fallen 55% in the last 12 months.
On Monday, B&M said it identified around £7 million of overseas freight costs not correctly recognised in cost of goods sold, following an operating system update earlier in 2025.
The underlying system issue has since been resolved but its financial impact is ‘material to our outlook for FY26,’ the firm said.
As a result Chief Financial Officer Mike Schmidt said he intends to step down. He will remain at B&M until a replacement is in place.
B&M said it intends to commission a comprehensive third-party review investigation into how the error arose.
B&M continues to expect second half UK like-for-like sales growth between low-single-digit negative percentage and low-single-digit positive levels.
The group continues to expect that with LFL growth and future adjusted Ebitda margins for B&M UK can stabilise at low-double-digit percentage levels over the medium term.
B&M said a further update will be provided alongside the interim results, on November 13.
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