Variety goods discount retailer B&M has reported an increase in third quarter sales and remains on track with its ongoing store expansion programme.

According to its latest trading update for the 13 week period to 28 December 2024, total Q3 group sales rose 3.5% with B&M UK sales up 2.8% to £1.3bn. Year-to-date B&M UK sales are up 3.3% to £3.5bn.

B&M UK gross margin and profit performance was strong in the quarter, with a clean inventory exit position. January seasonal transition is “well on track and availability is very strong”, while the retailer expects to open 73 new stores across the group, with 45 being B&M sites in the UK.

Alex Russo, Chief Executive, said: “Our performance across the Golden Quarter reflects disciplined operational execution across our businesses, driving volume and in turn profit growth. The business remains undistracted by the current economic headlines. Our operating model is well set up to give customers exceptional value when they need it most. Pricing, availability, store standards and a disciplined opening programme will underpin positive volume growth across our ranges. Our DC logistics network capacity upgrades are on-track in both the UK and France to support long-term growth.

“With three quarters of the financial year now complete, we narrow our previously disclosed profit growth guidance range. FY25 Group adjusted EBITDA (pre-IFRS 16) is now expected to be in the range of £620m to £650m (FY24 52 weeks: £616m / FY24 53 weeks: £629m). This is equivalent to Group adjusted operating profit of between £590m to £620m.

“Our strategy is clear – we are an everyday low-price discounter with a laser-focus in keeping excellence in retail standards and our costs the lowest. This allows us to drive volumes by offering our best-selling products at exceptional value to every customer. Through this volume growth, and with our leading return on capital business model, we continue to generate profit and cash returns for our shareholders.”