B&M European Value Retail SA  (BMRRY) , the British value retailer, saw shares surge in the first hour of trading after it announced record sales over the Christmas period.

Shares in the Liverpool, England-based group rose 7% to 295.2 pence each by 09:30 am GMT, extending their three-month gain to 16.57%.

B&M outpaced other retailers with the FTSE 350 General Retailers Index , which fell 2.07% Wednesday to 2,487.24 on the back of an 8% decline for clothing retailer Next plc,  (NXGPY)   after the U.K. clothing retailer issuing a profit warning due to poor festive sales. This brought down other retailers including Marks & Spencer (MAKSY) which was down 5.52% and Primark-owner Associated British Foods (ASBFY) lost 3.32%. 

The FTSE 250-listed retailer saw same-store sales in the U.K. increase 7.2% in the 13 weeks from Sept. 25, 2016 to Dec. 24, 2016. Revenue in the time period increased 20.7% to £741.4 million ($909.3 million).

"The stronger like-for-like growth reflects several factors, including strong seasonal product performance, improved in-store standards for customers and the normalization of server levels from our two new distribution centers," the company said.

The retailer's German unit Jawoll saw revenue grow more than 43% in the trading period between Oct. 1, 2016 and Dec. 31, 2016 to £47.7 million. B&M CEO Simon Arora said in a statement that the company's faster pace of expansion is going to plan.

"We have once again demonstrated the strength, relative appeal and popularity of our model at a time of uncertainty for consumers generally and continuing structural change in the retailing sector," Arora said. "We have delivered our best ever Christmas trading and served over 5.5 million customers in a single week in the UK alone as we continue to gain market share."

B&M's jubilant Christmas season comes in stark contrast to that of fellow retailer Next , which saw shares fall more than 13% on Wednesday morning.

Next issued a profit warning for 2017 Wednesday and said that sales from November to Christmas Eve were down 0.4%. Sales in the end-of-season sales were down 7% compared with last year, while for the year to Christmas sales were down 1.1%.

"The year ahead looks set to be another challenging year; therefore we are preparing the Company for tougher times and have set our full price sales budget accordingly," Next said.

B&M's success might be evidence that British consumers are flocking to value retailers as Brexit woes hit.

British retailers are expected to start feeling a Brexit pinch, as inflation due to the fall in the pound since last year's referendum forces prices up.

However, analysts from Liberum expect B&M to do well during this time.

"B&M is one of the highest quality names in the retail landscape, offering double-digit growth, a secure yield and the prospect of special dividends. It has a superior disruptive multi-price model which should, in a period of uncertainty, lead to out-performance," Liberum said.

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