Discount retailer B&M European Value Retail SA id on Tuesday that it had delivered a "positive" like-for-like trading performance in the three months ended 28 June, with revenues improving in both its UK and French operations.
Group revenues were up 4.4% at £1.4bn, with UK revenue growing 4.7% to £1.13bn and French revenues improving 7.6% to £136.0m. Revenue in its Heron Foods arm was down 0.4% at £138.0m.
UK like-for-like sales were up 1.3%, driven by a "good performance" in April from its general merchandise outdoor ranges, assisted by drier weather and the timing of the Easter break. B&M France LFL sales were up 1.1%.
B&M also noted that ASP deflation had led to a lower trading gross margin year-on-year in some general merchandise categories during Q1. However, it noted that from Q2, it will begin to annualise these ASP effects and new ranges being introduced will now have a higher bought-in trading gross margin.
Chief executive Tjeerd Jegen said: "My early days spent listening to and learning from our passionate colleagues and customers have underlined for me the strength of our value-focused model, which is more crucial than ever in the current challenging economic climate.
"While B&M UK's like-for-like sales are growing, I see a significant opportunity and requirement to sharpen our commercial and operational execution as we move towards and beyond the Golden Quarter. Looking ahead, my focus is on building on our strong foundations, leveraging our market position, and continuing to deliver exceptional value for our customers."
Reporting by Iain Gilbert at Sharecast.com