Russ Mould, investment director at AJ Bell, said: “Just when it looked as if all the bad news had come out of B&M, the value retailer has now thrown more items into the kitchen sink.
“Yet another downgrade to earnings guidance has kept the share price on its knees and left investors with a sour taste.
“The company talked about early signs of recovery, yet it is plagued by unsold goods that are taking up valuable space.
“It is slashing prices to get rid of these items, which is a headwind for profit margins.
“Heron Foods continues to limp along, and B&M is reviewing the business to find ways to better chime with customers.
“Ultimately, B&M remains in a state of flux while it tries to rearrange the furniture and get itself in a better position to mount a proper comeback.
“Investors show little faith judging by ongoing share price weakness.
“There are some bold decisions for B&M to consider, such as jettisoning Heron Foods and rightsizing its store estate to focus on fewer but better performing units.
“Yet it still needs to get the core day-to-day operations in a healthier position before it can think about the bigger picture.”
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