Discount retailer Pepco’s sales growth slows
LONDON (Reuters) -European discount retailer Pepco Group reported a slowdown in underlying sales growth in its latest quarter on Thursday, saying it faced a challenging trading environment in April and May, particularly in Central Europe.
The Warsaw-listed group, which owns the Pepco, Poundland and Dealz brands, did, however, maintain its financial guidance for the full 2022-23 year.
It said like-for-like sales rose 2.6% in its third quarter to June 30, after rising 8.5% in the second quarter.
Like-for-like sales in the Pepco branded business fell 1.2% in the third quarter overall, but trading had recovered in recent weeks with a positive like-for-like performance in June and the start to the fourth quarter.
Third quarter like-for-like sales in the Poundland Group – Poundland and Dealz – rose 9.0% due a strengthening performance in fast moving consumer goods.
Total group revenue increased 12.5% on a constant currency basis to 1.37 billion euros ($1.53 billion), boosted by 159 new store openings.
The group said it expected to report full year core earnings (EBITDA) growth in the “mid-teens” on a constant currency basis, assuming no further significant deterioration in the trading environment.
($1 = 0.8978 euros)
(Reporting by James Davey; Editing by Tom Hogue and Rashmi Aich)
Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.