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Typically, if a company announces profit warnings and CEO resignation in the same statement, it could potentially be expected to have a more extreme response than the 2% decline in stock prices experienced by B&M European Value Retail later last month.
But for B&M, the bad news was priced. In January, stocks fell 9% in January, when it revealed that Christmas-like sales continued to be in third quarter sales.
Retiring CEO Alex Russo could point out a 50% increase in B&M revenues since 2020, but the recent rise has been driven by busy store opening programs.
Panmure Liberum Brown broker Wayne Brown argues that B&M’s ratings “should be highly praised and attractive to suitors.”
Chair Tiffany Hall, who oversees the search for Russo’s successor, appears to agree. She recently purchased more than £200,000 in shares.
