SUMMARY
• Q1 Group revenues of €1.9 billion with constant currency revenue growth of 3% versus last year
• Group like-for-like (LFL) revenues declined 1.1% in Q1, with positive Pepco and Dealz LFL offset by continued challenging trading at Poundland
o Pepco LFL revenue up 1.4%, with volume-led growth, driven by improved availability and a strengthened pricing position
o Poundland LFL decline of 7.3%, largely driven by continued weak clothing and general merchandise ("GM") performance, alongside previously flagged challenging market conditions
o Dealz LFL up 6.6%, with strong demand across both FMCG and GM categories
• Group gross margin improved by over 140 basis points year-on-year in Q1 FY25, with continued strong progress in Pepco, offsetting significantly lower margins in Poundland
• Pepco Group celebrated its 5,000th store milestone with net new openings of 63 stores across the Group in Q1 FY25, largely representing openings of Pepco in our core CEE region
Commenting on the results, Stephan Borchert, Chief Executive Officer of Pepco Group, said:
"The Group delivered a mixed performance in its first quarter, with a strong performance from both the Pepco and Dealz brands, partially offset by Poundland's ongoing challenges. It was pleasing to see Pepco - the key engine for the Group's future strategic and financial growth - deliver its first quarter of like-for-like sales growth in more than a year.
This reflects how we have enhanced our core offer, sharpened pricing, and increased availability, alongside continued improvements in gross margin. Dealz also grew LFL sales by an encouraging 6.6%, as the investments we have made drove demand for its food and general merchandise ranges.
"However, Poundland saw LFLs fall, largely driven by continued underperformance in clothing and general merchandise following the transition to Pepco-sourced product, and a decline in gross margin. Getting Poundland back on track is a key priority - we are undertaking a comprehensive assessment of the business and taking immediate measures on improving our cash performance and strengthening the customer proposition.
"The opening of our 5,000th store is a landmark moment for Pepco Group, highlighting the potential we have to further leverage our estate by enhancing our product offer with a compelling price proposition to delight customers and drive a stronger performance. In addition, we will further focus on driving higher capital returns through targeted store expansion to deliver future success across our core European markets."
Download press release:
https://www.afm.nl/downloadregisterfile.aspx?type=openbaarmaking-voorwetenschap&enc=7Rpj0BBaMD5lzfwUlyQ9TIe+XbKYS1JE7+GVfXY2PxNqAT3NVNKp3QCQcI2WUb5gS/PYmhvg5EA+E7FpgiengZj0NLAMUDbP/oPnUtKH27VA0/CZGu7E4hLGdYYwwWpdlU7V52WPcDNhUBnnjl9cRbRebUn0LBBf7H7SkpkBfQfcIMTXm+lneUJVGL1pOg3+kYLa7y4p0nChKIsL6d/JtjuZ+fRBemV9vHeQAL0A4GEs9or4fSuzcLNGQh/8xy7bczUR+NWHlX1Qwlpp3KNQAd8vlkqstyAY7zqhR8+bUtY=
© 2025 GlobeNewswire (Europe)
