Discount retailer B&M has hiked its earnings targets for the year after it was buoyed by “strong” sales in the past quarter.
The company has been able to keep stores open across the UK due to their essential status despite the nationwide coronavirus lockdown.
B&M European Value Retail told investors that it reported “strong revenue growth” over the three months to the end of December.
It said revenues and profit margins have stayed positive in the current quarter, as it was particularly buoyed by the group’s UK operations.
The company therefore now expects to post adjusted earnings of between £590 million and £620 million for the full-year ending March 27.
This represents a jump on its previous earnings forecast of between £540 million and £570 million.
It said earnings will be higher despite committing to repay the £80 million business rates holiday it received from the Government.
However, it stressed that shifting consumer trends as restrictions change “creates significant forecasting challenges which will persist well into the new financial year”.
In a statement, the company said: “The safety of the Group’s colleagues and customers remains the key priority, whilst working hard to continue to meet customers’ needs.
“B&M also re-introduced the colleague discount for all NHS workers throughout January 2021.”
Shares were down 2.8% at 528.8p in early trading on Thursday.