B&M European Value Retail cut its full-year profit guidance after a softer third quarter, sending its London-listed shares down more than 4%. U.K. like-for-like sales fell 0.6%, though the company noted an improving trend with 3% growth in December that carried into January. Total group revenue rose 2.9%.

The downgrade to adjusted EBITDA of £440–475 million, from £470–520 million, reflects deeper-than-planned stock clearance, price investments, and ongoing struggles at its Heron Foods business. Analysts at Jefferies estimate the midpoint cut implies a roughly 12% reduction in pre-tax profit, a disappointment they had largely anticipated.

Management reiterated that ongoing actions around SKU rationalisation and pricing should restore sustainable U.K. growth over the next 12 to 18 months. While Jefferies sees merit in the strategy, they remain on the sidelines. Investors will watch for whether the December sales improvement can be sustained and if Heron Foods can be turned around.