B&Ms earnings plummet, shares drop; CEO outlines Back to B&M Basics planB&M, a discount retailer, reported a significant drop in earnings, causing shares to fall. The companys adjusted earnings before interest, taxes, depreciation, and amortization fell by 30.2% in the first half of its fiscal year. This decline was due to flat sales growth in existing stores and rising costs.B&Ms adjusted earnings for the first 26 weeks of the year were £191 million, down from £274 million in the same period last year. While total revenue increased by 4% to £2.75 billion, this growth was mainly due to new store openings, not increased sales in established locations.B&M UK, the largest part of the business, saw very little growth in sales at its existing stores, just 0.1%. This was due to good sales in general merchandise being offset by a decline in food and grocery items. The companys profit margin also decreased, reflecting lower margins on some goods and efforts to keep prices competitive on key value items.New CEO Tjeerd Jegen has outlined a Back to B&M Basics plan, focusing on improving pricing, promotions, simplifying product ranges, and ensuring products are readily available. He believes these actions will help restore sustainable sales growth in the UK over time.Early trading in the third quarter has been at the lower end of expectations, and B&M has reduced its interim dividend by 34%. Despite this, the company is sticking to its full-year earnings forecast.

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