Leadership Change Amid Financial Restatement
B&M, one of Britain’s prominent discount retailers, is reportedly searching for a new chief financial officer following the departure of Mike Schmidt. According to reports, Schmidt is stepping down after the company discovered a £7 million error in its accounts related to overseas freight costs that were not properly recorded. The board has indicated he will remain until a successor is appointed, with sources indicating an external review will be commissioned.
Accounting Error Impacts Profit Forecasts
The company stated that the accounting discrepancy occurred when freight costs were not “correctly recognised in cost of goods sold” following a system update earlier this year. This has led analysts to revise profit expectations downward, with adjusted profits for the year to March 2026 now projected between £470 million and £520 million, compared to previous estimates of £510 million to £560 million. For the first half, profits are reportedly expected to be £191 million, down from £198 million previously.
Market Reaction and Strategic Shifts
Shares in the FTSE 250-listed B&M reportedly slumped by nearly 18% in early trading, extending a nearly 50% decline for the year. This development follows the company’s earlier profit warning in October and another in February, with management citing challenging market trends and cautious consumer spending, particularly among its core lower-income shoppers. Under new CEO Tjeerd Jegen, who took leadership in June, B&M has initiated a “back to basics” plan involving price cuts and improved product availability.
Broader Industry Context
The retail sector’s challenges come amid wider industry developments affecting various markets. While B&M addresses its operational issues, other sectors are navigating their own transformations, including healthcare collaborations and environmental considerations such as emissions management. Additionally, global trade policies and sustainability investments represent related innovations shaping economic landscapes.
Company Background and Future Outlook
Founded in 1978, B&M expanded from a regional chain to a major retailer under the leadership of the Arora brothers, growing to 1,270 stores across the UK and France. The company, which includes Heron Foods and B&M Express brands, anticipates UK like-for-like sales to be flat or show low single-digit growth this year. Mike Schmidt‘s departure marks a significant leadership change as B&M prepares to release its first-half results on November 13, where further updates on the external review and strategic direction are expected.
This article aggregates information from publicly available sources. All trademarks and copyrights belong to their respective owners.
Note: Featured image is for illustrative purposes only and does not represent any specific product, service, or entity mentioned in this article.
