(Reuters) -Britain’s B&M reported a 31.5% drop in half-year adjusted operating profit on Thursday, sending its shares down as much as 5% as the discount retailer struggled with weak sales and cost pressures.
The company also named outsider Helen Cowing as interim finance chief, saying her leadership experience will be key to B&M’s turnaround strategy under new boss Tjeerd Jegen, who hopes to restore the retailer’s sales and boost profits.
British retailers are navigating a difficult environment, with high interest rates and persistent, albeit slowing inflation forcing many households to cut back on discretionary spending amid worries of possible tax hikes in the government’s November 26 budget.
Cowing has held finance chief roles across multiple sectors, including at European vending and coffee services provider Selecta Group and fashion retailer FatFace.
B&M, which sells everything from garden furniture and electrical items to toys and food, reported an adjusted operating profit of 177 million pounds ($238 million) for the 26 weeks ended September 27, below the 258 million pounds reported a year ago.
Despite the dip, the company stuck to its outlook for annual adjusted core profit outlook, which it had cut in October following an accounting error that cost B&M 7 million pounds.
To draw customers back into its stores, B&M said on Thursday that it has cut prices on 35% of its major value items and rebooted a program that gives store managers flexibility to respond to the demands of their local market.
($1 = 0.7451 pounds)
(Reporting by Rishab Shaju and Yamini Kalia in Bengaluru; Editing by Subhranshu Sahu and Emelia Sithole-Matarise)
