B&M boss Alex Russo is to step down from his position at the discounter as the chain downgraded its profits guidance for the second time this year.
Shares crashed as the group warned the markets this morning that adjusted EBITDA for the year is now expected to be in the range of £605m to £625m.
B&M said the downgrade reflected the current trading performance of the business, an uncertain economic outlook and the potential impact of exchange rate volatility on the valuation of its stock.
It follows an earlier profits warning in January as B&M trimmed guidance from £620m-£660m to £620m-650m as a result of a weaker-than-expected Christmas.
Alongside the news of lower profits, B&M also announced Russo had informed the board of his intention to retire as CEO at the end of April.
The group said its board was in the advanced stages of a recruitment process for a new chief executive, with a headhunter scouting a replacement.
Shares at B&M sank 8.1% to 267.3p on the announcement as markets opened this morning. It puts the group’s stock value down by more than 25% so far in 2025.
Analysts at Panmure Liberum said it was “disappointing news”.
“The retirement of Alex Russo and a downgrade are unlikely to be mutually exclusive events,” the broker added. “The performance of B&M has been disappointing for the past year, but we were hopeful that things were turning and momentum in the first quarter was going to ensure EBITDA consensus guidance of £620m to £650m was going to be met in FY25.”
B&M did not share the reason for Russo’s departure.
Chair Tiffany Hall thanked Russo for “his commitment, energy, dedication and hard work” since joining the business in 2020 and becoming CEO in September 2022.
“Alex has increased our store footprint in both UK and France and driven a relentless focus on high operational standards and low costs, enabling the company to provide great products and everyday low prices to our customers whilst generating continued strong cash returns for our shareholders,” she added.
“We wish him well for the future.”
Russo said: “I have thoroughly enjoyed my time at B&M since joining in 2020.
“The business has been successfully steered through the pandemic years and is now larger and stronger with group revenues increasing by almost 50% and cash distributions to shareholders in excess of £2bn during my tenure.
“It has been professionally rewarding to assemble and work with a high-quality leadership team and to retire leaving growing businesses with great potential in both UK and France. I wish the board and the leadership team every success in the years ahead.”
B&M added in the announcement that the company’s remuneration committee had exercised its discretion to allow Russo to be eligible for his annual bonus for the current financial year and to retain his awards under the group’s share plans.
The business will update on its trading in a pre-close update at the end of April.
Analysts at Peel Hunt said Russo’s departure was “a loss as he was instrumental in improving store standards across the chain”.
“Russo was not everyone’s cup of tea but he progressed the business significantly and his eye for in-store detail will be missed,” the broker added.
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