Investing.com -- Shares in B&M European Value Retail Plc (LON:BMEB) fell 4% on Wednesday after the discount retailer reported a decline in UK like-for-like sales for the first quarter of its 2027 financial year, the three months to June 27.

Like-for-like sales at B&M UK fell 2.3% in the quarter, which the company said reflected a slower start to garden and outdoor sales compared with the prior year, when unusually early warm and dry weather had driven a 10.9% rise in like-for-like garden sales. B&M UK total revenue rose 0.3% to £1.14 billion.

Group revenue rose 2% to £1.43 billion, driven by growth in B&M France and Heron Foods.

B&M France revenue rose 14.6% to £156 million, with like-for-like sales up 5.3%, compared with 1.7% in the fourth quarter. Heron Foods revenue rose 2.8% to £142 million, with like-for-like sales up 2.6%.

Chief Executive Officer Tjeerd Jegen said, "Our first quarter is our seasonally most variable for sales, and the previously flagged later start to the garden season against a very strong comparable last year made this especially so." He said general merchandise like-for-like sales returned to growth in May and June, and garden and outdoor inventories ended the quarter at normalized levels.

The company said its UK FMCG trading margin remained below prior-year levels as it continued to invest in price in a competitive market, while general merchandise trading margin was higher than last year. B&M said it expects year-on-year margin improvement over the year ahead as it lands its autumn and winter ranges.

Jefferies, which rates the stock "hold" with a 180 pence price target, said the update pointed to "a slow start to FY27", with UK like-for-like sales down 2.3%, broadly in line with its forecast for a 2.0% decline.

Analysts Andrew Wade and Grace Gilberg attributed the fall to a strong weather-driven comparison a year earlier, when garden sales were robust, and less favourable weather early this year. They added that general merchandise returned to growth in May and June and inventory ended the period at normalised levels.

The analysts said France "recorded a robust" like-for-like sales figure and "is clearly executing well, albeit it remains only c.10% of the group."

They said the update was "very much as expected" given signposting at the company's recent results, and that they saw "little here to suggest any change to consensus" or their neutral stance on the stock.

B&M said it continued to work on its "Back to B&M Basics" plan, including sharpening its FMCG ranges through SKU rationalization, which it said was 75% complete across UK stores by the end of July.