The trading group Pepco Group NV presented key data on sales development in the first quarter of the 2025/26 financial year on Thursday.
According to an interim report, sales reached 1.4 billion euros in the period from October to December. Adjusted for exchange rate changes, revenue increased by 4.3 percent compared to the same quarter of the previous year. On a like-for-like basis and adjusted for the share of the fast-moving consumer goods (FMCG) category, from which the group plans to withdraw, they grew by 3.3 percent.
The retailer attributed the increase to solid growth at discounter Pepco, whose sales excluding FMCG contributions increased by 4.2 percent on a like-for-like and currency-adjusted basis, not least thanks to strong results in Poland, Italy and the Iberian Peninsula, reaching around 1.3 billion euros. The Dealz retail chain, however, suffered a currency-adjusted decline in sales of 6.2 percent to 101 million euros.
The gross margin at group level increased by 360 basis points compared to the same period last year and, at 49.4 percent, was at the level of the fourth quarter of 2024/25. According to its own information, the retailer expanded its branch network by 51 locations during the first quarter. At the end of December it had 4,410 stores.
The Dealz retail chain is still for sale
CEO Stephan Borchert described the start of the year as “encouraging”. He emphasized that the group’s focus on price leadership in a subdued macroeconomic environment continues to resonate with customers.
According to its own information, the company is continuing to work on the sale of the Dealz chain, which is expected to be completed later this year. The annual forecasts remained unchanged given the current results. For 2025/26, management continues to expect sales growth of six to eight percent. Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for special effects, are expected to increase by at least nine percent. Adjusted net income is expected to increase by more than 25 percent year-on-year.
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