Pepco outperforms yet again after "very successful" Christmas
Impressive trading numbers continue to spill out of Pepco Group, the fast-growing pan-European variety discount retailer. Having opened its 3,000th store in Europe last month, the owner of the Poundland brand in the UK and maker/retailer of the Pep&Co fashion line, said group revenues for the first quarter ended 31 December jumped 27% higher to €1.65 billion on a constant currency basis and by 24% on an actual basis.
Group Q1 like-for-like sales grew 13% on a constant currency basis, “with all brands delivering very strong growth", (Pepco: +19.7% and Poundland Group: +4.4%).
The positive numbers were boosted by a “a very successful Christmas trading period, outperforming the wider market”, benefiting from enhanced stock levels.
And the relentless store opening policy is to be accelerated through the year so it remains on track to deliver a target of 550 net new stores in FY23.
Interestingly, it added that while inflation remains at elevated levels across its markets, inflation in clothing and footwear is “running significantly below the headline inflation rates”.
On its outlook, Pepco added: “Assuming the macro trading environment performs as we expect, we remain on track for another year of consistent performance, with an increased store opening target and robust underlying like-for-like for Pepco, Poundland and Dealz Poland.
“We anticipate that EBITDA growth on an IFRS16 basis, and assuming constant FX rates, will be in the mid-teens for FY23, which would be consistent with the first quarter”.
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