Pepco Confirms Full Year Targets with Revenue Growth
European retailer Pepco Group expects to meet its annual targets despite geopolitical tensions. Revenue rose 3.7 percent as the company continues to expand.
European discount retailer PEPCO GROUP NV has reaffirmed its full-year financial guidance, expressing confidence in its performance despite geopolitical tensions and an uncertain consumer environment. The company noted that the ongoing conflict in the Middle East has had a minimal impact on its operations thus far, citing its investment in supply chain resilience as a key factor in managing the evolving situation.
The group reported healthy stock levels across its distribution centers, partly due to higher inventory levels compared to the previous year. This strategic positioning was influenced by the timing of the China New Year and the Easter period. Pepco also highlighted its structurally lower exposure to short-term demand volatility and fast-fashion cycles, supported by long-term sourcing and planning.
In the 25 weeks leading up to March 22, the group saw revenue growth of 3.7% on a constant currency basis. Trading for the core Pepco brand has gained momentum in recent weeks, driven by positive consumer reception to the launch of its spring, summer, and Easter collections. The company is also proceeding with the divestment of its Dealz brand, which remains on track for completion within the current financial year.
A significant milestone for the group's expansion is set for June, when the retailer will enter North Macedonia, marking its 19th country of operation. CEO Stephan Borchert emphasized the importance of this regional growth strategy.
"In June, we will enter North Macedonia, further strengthening our presence in Central and Eastern Europe and taking Pepco to 19 countries overall."
Operations in the Iberian Peninsula and Italy have shown particularly strong execution, contributing to consistent and profitable store growth.
"Strong performance and operational execution in Iberia and Italy is driving consistent, profitable store growth, giving us increasing confidence in the potential future growth opportunity for this region."
As of late February, the group operated 4,046 stores. It expects to add approximately 250 additional locations to its network during the current fiscal year. Following the announcement, shares in the company rose by 1.1%.
