Investing.com -- Shares of B&M European Value Retail (LON: BMEB ) plummeted over 12% on Thursday after the variety store chain lowered its profit guidance for the fiscal year 2025.

B&M revised its adjusted EBITDA guidance for FY25 to a range of £620 million to £650 million from £620 million to £660 million.

In its third-quarter trading update, B&M reported strong revenue growth across its key markets, with a year-on-year increase of 2.8% in the UK and 12.5% in France.

The company reported robust seasonal sales in categories like toys and homeware, as well as solid gross margins, fueled by disciplined inventory management and operational efficiency.

B&M revised its adjusted EBITDA guidance for FY25 to a range of £620 million to £650 million.

“B&M has a strong track record on buying and offers SKU discipline and tight cost control. B&M should benefit from consumers remaining value conscious and offers a strong store rollout story in both the UK and France, with only 2% share of UK retail overall,” said analysts at RBC Capital Markets in a note.

While B&M continues to position itself as a value-driven retailer focused on everyday low prices, the tightening of disposable incomes across its key markets has likely contributed to tempered earnings forecast.