European discount retailer Pepco Group said it remained confident in delivering full-year results in line with the guidance set out last December, despite the uncertain consumer and geopolitical backdrop.
In the 25 weeks to 22 March, covering almost the first six months of the fiscal year, the group’s total revenue grew 3.7% on a constant currency basis, while like-for-like revenue rose 3.1%.
Revenue in Pepco’s namesake brand, which makes up the core of the business, was up 4.8% on a constant currency basis. Like-for-like growth was 4.2%.
Performance Acceleration
The Pepco brand’s trading performance has accelerated over the recent weeks, following a strong customer response to the launch of its spring/summer and Easter collections, the company said in the pre-close statement for the first half of the year.
“In June, we will enter North Macedonia, further strengthening our presence in Central and Eastern Europe and taking Pepco to 19 countries overall,” CEO Stephan Borchert said in the statement.
“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,” he added.
At the end of February, Pepco operated 4,046 stores. The group expects to add around 250 stores to its network during the fiscal year, all focused on the Pepco brand.