Shares in variety retailer B&M European Value Retail (LSE: BME) recovered after initially falling on Tuesday despite the company declaring a special dividend on the back of “pleasing” sales growth over the key Christmas period.
The owner of over 1,200 stores under the B&M, Heron Foods and B&M Express fascias said total group revenue rose 5.0% year-on-year to £1.65 billion in the 13 weeks to December 23, including a 3.7% increase in the UK. B&M shares dipped to 549.40p at the market open but were trading marginally higher by late morning.
“The performance across the golden quarter has been pleasing, with strong operational execution across the three businesses,” said chief executive Alex Russo. He confirmed B&M is on track to meet full-year earnings guidance and announced a 20.0p per share special dividend.
Read More News:
Plus500 beats expectations with strong 2023 outlook
The update comes amid a turbulent period for UK retailers as shoppers cut back on discretionary spending in response to the rising cost of living. However, discount chains like B&M continue to gain market share. The stock is up 25% over the past 12 months.
