B&M shares plunge: Finance boss exits as retailer slashes profit guidance

Shares in B&M plummeted on Monday after the beleaguered retailer was forced to slash profit guidance as it announced the departure of its chief financial officer.

The group followed a bitterly disappointing trading update posted earlier this month by flagging previously unidentified overseas freight costs of £7million.

B&M said the costs were ‘not correctly recognised in cost of goods sold, following an operating system update earlier this year’.

While the underlying system issue has since been ‘resolved,’ B&M said its ‘financial impact is material’ to its outlook for the 2026 financial year.

It came as CFO Mike Schmidt revealed his intention to step down from the board and his role when the group is able to find a replacement.

B&M European Value Retail shares plunged 13 per cent to 188.95p in early trading, meaning their value has more than halved over the last 12 months.

Chief executive Tjeerd Jegen says his ‘Back to B&M Basics’ plan would revive UK sales growth within 12 to 18 months

The retailer, which has 786 B&M stores in Britain and 344 under the Heron Foods and B&M Express brands, has seen profits plummet this year amid higher costs and disappointing UK sales. 

Analysts at Shore Capital wrote in a note: ‘While such system issues do happen, the concerns for us are that… it suggests that company is less on top of its costs numbers than we would expect and… that the business is running at a lower gross margin than we thought.

‘[This suggests] a tougher route back to the double-digit EBITDA margins the company is targeting.

‘On the back of this warning CFO Mike Schmidt has stepped down and the search for a successor is underway.’

Chief executive Tjeerd Jegen earlier in October told shareholders his ‘Back to B&M Basics’ plan would revive UK sales growth within 12 to 18 months.

It now expects group adjusted earnings before nasties to come in at £470million to £520million for 2026, down from previous guidance of £510million to £560million

For the first half, it expects to post adjusted EBITDA of around £191million, down from £198million.

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