B&M shares jump as retailer forecasts profit gain of up to 16% on turnaround efforts

Nov 12 (Reuters) - B&M shares jumped on Thursday to a more than one-year high after the discount retailer said its annual profit may rise up to 16% as lower prices and leaner ranges under a turnaround plan helped it win back cash-strapped shoppers.

The company, which sells products ranging from food and household essentials to toys and garden items, said its second-quarter like-for-like (LFL) sales in the UK increased 3.2%, marking a recovery from the 2.3% decline in the first quarter.

B&M shares rose as much as 19.5% to 333.4 pence by 0833 GMT.

The company forecast fiscal 2027 adjusted pre-tax profit between £280 million and £330 million ($371.20 million and $437.48 million), versus LSEG consensus of £290.41 million.

One of Britain's largest discount retailers, B&M has long been regarded as a key beneficiary when household budgets come under pressure.

CEO Tjeerd Jegen, who took over in June 2025, launched his "Back to B&M Basics" plan in October that year to rebuild profitability amid stiff competition, particularly from supermarket loyalty schemes.

The strategy appears to be delivering results, with B&M saying trading in its peak October-to-December period was positive across all three of its businesses.

LFL sales for the six months ended September 26 grew 5.9% in France and B&M said it had not seen a material impact from ongoing social unrest in the country.

($1 = 0.7543 pounds)

(Reporting by Shashwat Awasthi and Yamini Kalia in Bengaluru; Editing by Subhranshu Sahu)