B&M European Value Retail SA Chief Financial Officer Mike Schmidt announced he’ll step down after the company cut its guidance again due to an accounting error, just two weeks after issuing a profit warning.
The furniture retailer now expects adjusted earnings before interest, taxes, depreciation, and amortization of between £470 million ($631.6 million) and £520 million this fiscal year, compared to a £510 million to £560 million
Shares dropped as much as 20% in London.
Schmidt will remain at the company until a replacement is found. The revised forecast was due to £7 million of overseas freight costs not correctly being recognized, which it blamed on an operational issue. The financial impact was “material” and the error will be subject to a third-party review, B&M said.
B&M is in the process of cutting prices and narrowing its product ranges after a review revealed operational weaknesses that Chief Executive Officer Tjeerd Jegen warned could take 18 months to fix.
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