B&M European Value Retail has lowered its profit guidance for the second time this year, citing unexpected costs from its ongoing turnaround initiative. The retailer is spending heavily to clear excess inventory and restructure operations amid challenging market conditions.

The company's previous guidance cut in March signaled early trouble with its transformation plan. Now, mounting pressure from markdowns and operational disruptions are further eroding margins. Investors are concerned about the retailer's ability to execute its strategy while maintaining profitability in a competitive discount market.

B&M's struggles reflect broader challenges facing UK retailers navigating inflationary pressures and shifting consumer behavior. The company's €3.2 billion acquisition by Cinven in 2021 increased scrutiny around its operational performance. Analysts will watch closely for signs of progress in upcoming quarterly results.