B&M: db DIG data suggests 1Q LFL weaker despite the weather

Research evidence excerpt

B&M: db DIG data suggests 1Q LFL weaker despite the weather

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Sell B&M 2 July 2026

Europe Reuters Bloomberg Rating Sell

Luxembourg BMEB.L BME LN Price target (GBX) 185.00 Price at 1 Jul 26 193.20

52-week range 287.50 – 155.25

Retail

Retail - Non Food Valuation & Risks

db DIG data suggests 1Q LFL weaker despite

the weather AdamResearchCochraneAnalyst

+44-20-754-17812

DB View

Shwetha Ramachandran B&M has been one of the best performing UK retailers in the last month with the Research Associate

shares up 12% aided by a robust FY26 results print, appointment of a new CFO,

CEO purchasing shares and more seasonal weather patterns in June. 1Q faces a Benjamin Yokyong-Zoega

tough comparison from the prior year and we don’t see the lower income Research Analyst

+44-20-754-12338 consumer demographic changing their purchasing habits. Accordingly we

forecast -1.5% UK LFL for 1Q although we expect this to improve over

subsequent quarters. For investors we believe that continued progress on the

strategic initiatives (availability, pricing, ranging) is the most important factor

rather than weather related sales comparisons. Having said that, we need to see

progress in LFL sales before becoming more positive on the investment case and

this is not likely to be provided in 1Q. Accordingly, we retain our Sell rating and

185p price target.

1Q talking points

At the beginning of June, the company mentioned that April was weak (given a

strong period last year) and May was better than expected so the June trading

will be the deciding factor. Our dbDIG card data for June suggests a small

negative LFL sales performance despite June weather being 3 degrees above