Now 294 pens for action trades, B&M European retail value (LSE: BME) Actions have lost 46% of their value over the past year. At that time, the discount seller fell out of FTSE 100 and to FTSE 250 Sharing index.

B&M struggled badly with a challenging time for consumers in Great Britain, which resulted in the resignation from the then Central Director in April and a constant stream of profit warnings from last year. The seller fell yesterday (June 4) after a chilly market reaction to year -round trade numbers.

As a long -term investor, I wonder if B&M may now be an irresistible share of recovery. Although he still stands in the face of stern challenges, his actions now trade in a forward price to profit (p/e) 8.6 times.

This is below the average five -year average 11.5 times and conveniently inside the territory of values ​​below 10.

Here is my verdict.

Reversal of sales

Theoretically, value sellers such as B&M should bloom in such times as buyers cut expenses. But like a significant part of the main street, which also hit challenging times.

Revenues increased by 3.7% within 12 months to March 29, said the company on Wednesday. But this thanked mainly for the recent opening of stores (last year he cut the ribbon in 38 net B&M UK).

Similarly to the sales in B&M, which accounts for approximately 80% of the admission at the level of group-spades by 3.1%, even worse than expected. The corrected operational profit here fell by 1.3%, which in combination with 39.3%inverse in Heron Foods meant that the appropriate group profits dropped by 1.8%.

Rather, the company has not published any commentary on trade from the beginning of the recent year. However, it warned that Financial 2026 would bring challenges in the entire retail sector of increased minimum pay, higher social insurance and other taxes, as well as inflation of expenditure costs

To sum up, it is not surprising that B&M shares sank after the release.

Under pressure

I have been positively seen for a long time, a former seller of Foota and his long -term perspectives. The growth was stratospheric since mid -2000, based on the growing demand for value among consumers and the company’s speedy expansion program.

B&M UK currently has 777 stores and aims in total 1200 in the coming years.

However, the company has significant challenges to overcome because it illustrates the decision of Poundland’s rival to leave Great Britain. Prolonged squeeze consumer expenditure looks like a continuation when the national economy is fighting.

The burden of consumer budgets is not the only problem, however. B&M operates on a highly competitive market, on which sales and margins are under constant pressure. Indeed, the corrected margin of B&M operational profit in Great Britain dropped to 11.8% last year from 12.4% earlier.

And the lack of an online channel leaves it in a huge adverse situation for many of its peers.

Investors will hope that the upcoming CEO Tjeerd Jegen will reverse the ship when he arrives this month. The recent man occupied a number of managerial positions in this century in places like TescoWoolworths, and recently the ACell group.

But I am not convinced that there may be a return on the horizon. To sum up, I would prefer to look for shares with a lower risk to consider today.