Latest news with #StephanBorchert
Yahoo
11-07-2025
- Business
- Yahoo
New Pepco Group posts record revenue growth of 7.7% in Q3 2025
European discount retailer New Pepco Group has reported a record revenue of €1.1bn ($1.28bn) during the third quarter (Q3) of FY25 - a 7.7% rise in constant currency terms. After finalising the sale of Poundland on 12 June 2025, the subsequent report concentrates on the activities and performance of New Pepco Group, which comprises Pepco and Dealz Poland. This performance marks a continuation of the New Pepco Group's positive trajectory, with like-for-like (LFL) revenues up 2.6%. Pepco Group CEO Stephan Borchert stated:'Our results in Q3 reflect our continued strategic execution across New Pepco Group and actions we have taken to drive more consistent performance. The Pepco brand delivered a strong performance in the third quarter, registering record revenue of over €1bn, a third consecutive quarter of like-for-like sales growth and a further uplift in gross margin.' Pepco saw a 2.4% rise in like-for-like revenues, marking its third consecutive quarter of growth. The increase was driven by a combination of strategic initiatives, including improved product availability, a sharper pricing strategy and enhanced product ranges. In line with the strategy outlined during the Capital Markets Day, Pepco intends to exit the fast-moving consumer goods (FMCG) sector by the end of FY25. Excluding FMCG sales, Pepco's LFL performance in Q3 saw a robust increase of 4.8%. Dealz also reported LFL sales rise of 5.8%, spurred by positive demand in food and general merchandise. New Pepco Group's gross margin improved by 180 basis points year-on-year in Q3 FY25. The group expanded its store network with 45 new Pepco and Dealz stores, primarily in the Central and Eastern Europe region, bringing the total to 4,276 stores at the end of the quarter. Pepco Group chief executive officer Stephan Borchert said: 'Our results in Q3 reflect our continued strategic execution across New Pepco Group and actions we have taken to drive more consistent performance.' 'Having completed the sale of Poundland in June 2025, New Pepco Group now has a simpler structure and we look forward with confidence to capitalising on the numerous growth opportunities for the Pepco brand, as part of our ambition to become one of Europe's most successful discount retailers.' The group anticipates continued strong performance from both Pepco and Dealz, in line with their objectives. Pepco is expected to see high single-digit year-on-year growth in revenues and underlying earnings before interest, taxation, depreciation and amorisation (EBITDA) (International Financial Reporting Standard [IFRS] 16) for FY25, while Dealz is projected to achieve an EBITDA (IFRS 16) of €30m. The group also plans to open 250 net new stores during FY25. "New Pepco Group posts record revenue growth of 7.7% in Q3 2025" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
10-07-2025
- Business
- Yahoo
Pepco posts higher Q3 revenue, launches buyback of up to 50 million euros
GDANSK (Reuters) -Discount retailer Pepco Group posted record-high third-quarter revenue and announced a share buyback programme of up to 50 million euros ($58.68 million) on Thursday, as it reported its first results after the sale of Poundland. The Warsaw-listed company said its revenue rose 7.7% year-on-year at constant currency to 1.1 billion euros in the third quarter that ended on June 30, with like-for-like sales growing 2.6% driven by growth in both the Pepco and Dealz brands. "Our results in Q3 reflect our continued strategic execution across the New Pepco Group and actions we have taken to drive more consistent performance," CEO Stephan Borchert said in the press release. Investment firm Gordon Brothers bought the struggling Poundland business from Pepco in June for a nominal value. Pepco, which had been weighing its options for the 800-store British discount retailer since December, said at the time the sale was in line with its strategic plan to move away from fast-moving consumer goods. Poundland's business, heavily reliant on low-margin fast-moving consumer goods, had been a significant drag on the group's overall profitability. The divestment allows Pepco to focus on its main brand, which sells higher-margin clothing and general merchandise mainly in Central and Eastern Europe. Pepco said it would launch the buyback programme, aimed at reducing its capital and meeting obligations under equity incentive plans, on or around July 17. The maximum price to be paid for the share repurchases is 110% of the market price of the ordinary shares, Pepco said, adding the current share price undervalues the group's future prospects. ($1 = 0.8522 euros)
Daily Mirror
24-06-2025
- Business
- Daily Mirror
River Island shutting popular store this weekend as 33 more branches set to go
River Island employs around 5,500 people and was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s River Island is closing one of its shops this weekend ahead of plans to close 33 more branches. The fashion retailer is shutting its branch in Banbury, Oxfordshire, on June 28. It means shoppers will have to travel to their next nearest store in Rugby and Oxford. The closure was revealed in a post on Facebook, which contained an image of a closing down sign. The poster reads: 'This store will be closing on Saturday 28th June. Please visit us 24/7 online at or at your nearest store: Rugby and Oxford. To all our valued customers we will see you soon!' This isn't the only River Island that has shut in recent months. River Island stores in Willows Place, Corby, and in Vicar Lane Shopping Centre in Chesterfield both closed in April. It comes after it was reported that hundreds of jobs are at risk at River Island as part of major restructuring plans that involve shutting 33 of its 230 UK stores. These latest closure are not part of these proposals. A further 71 stores could also at risk depending on talks with landlords, with River Island looking to slash rents at these locations, according to Sky News. River Island employs around 5,500 people and was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s. Ben Lewis, River Island chief executive, told Sky News: "River Island is a much-loved retailer, with a decades-long history on the British high street. "However, the well-documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers' needs. "The sharp rise in the cost of doing business over the last few years has only added to the financial burden. We have a clear strategy to transform the business to ensure its long-term viability." River Island has reportedly hired advisors from PwC in order to oversee the restructuring process, and the proposals will need to be approved by creditors. River Island fell to a £33.2million loss in 2023 after sales slid by 19%, according to its most recent set of accounts. It comes as Poundland revealed plans to close 68 stores as part of a major restructure, plus it will look to reduce its rent at a number of other locations. The restructuring plan will go through the High Court for approval. As part of the restructuring plan, Pepco will retain a minority stake in Poundland. Gordon Brothers is providing up to £80million of financing to help fund the turnaround plan. Stephan Borchert, Pepco Group chief executive, said: 'This transaction will strongly support our accelerated value creation programme by simplifying the group and focusing on our successful Pepco business. 'Poundland remains a key player in UK discount retail, with millions of customers annually and a well-loved brand and proposition. 'We want to sincerely thank all the Poundland team for their ongoing commitment and contribution to the group and wish Barry Williams and his team all the best for the future.'
The Guardian
12-06-2025
- Business
- The Guardian
Poundland sold for £1 with dozens of store closures expected
The discount retail chain Poundland is expected to close dozens of its stores after it was sold to the investment company Gordon Brothers for £1. Poundland, which has more than 800 outlets in the UK and employs about 16,000 people, was put up for sale by its owners, Pepco Group, in March as a result of 'challenging trading conditions'. The US investment firm Gordon Brothers, former owner of Laura Ashley, said it would invest up to £80m in Poundland to help turn the business around. As part of the deal, Poundland faces a restructuring plan that is expected to include a swath of store closures, putting thousands of jobs at risk. The company is also thought to be looking to slash its rent bill. Poundland said the details would be communicated 'in due course'. Poland-based Pepco, which bought Poundland in 2016, had been looking at options for the outlet since late last year in order to focus on its more profitable Pepco brand, at a time when Poundland was facing tough competition from other discount chains and in the face of increased wage costs. Stephan Borchert, the chief executive of Pepco Group, said the sale 'marks an important milestone in our strategic plan to move away from FMCG [fast-moving consumer goods] and focus predominantly on Pepco, our higher margin clothing and general merchandise business'. Pepco reportedly received interest in Poundland from others, including the restructuring specialist Hilco and Modella Capital, the new owners of WH Smith's high street business. However Pepco said last month that any sale of Poundland would not result in 'major proceeds' for investors as Poundland might not make a profit in the last financial year. Even at a time when consumers are watching their spending, budget chains such as Poundland have been having a particularly tough time as a result of growing competition from supermarkets such as Tesco, Aldi and Lidl, as well as the expansion of rival groups such as Savers, The Range and Home Bargains. Discount retailers such as Poundland have slim profit margins, giving them little room to absorb extra costs such as the increase in national insurance contributions, which took effect in April, at the same time that sales growth is slowing as UK households rein in their spending. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Poundland was founded in 1990 with its first store in Burton upon Trent. It became popular for offering value products ranging from food and cosmetics to homeware and stationery, with all items originally priced at £1. It moved away from its £1 model in 2019, bringing in what it called a new pricing structure, although in recent months it has tried to win back customers by increasing the number of £1 products it sells.
Yahoo
12-06-2025
- Business
- Yahoo
Poundland sold for £1 with dozens of store closures expected
The discount retail chain Poundland is expected to close dozens of its stores after it was sold to the investment company Gordon Brothers for £1. Poundland, which has more than 800 outlets in the UK and employs about 16,000 people, was put up for sale by its owners, Pepco Group, in March as a result of 'challenging trading conditions'. The US investment firm Gordon Brothers, former owner of Laura Ashley, said it would invest up to £80m in Poundland to help turn the business around. As part of the deal, Poundland faces a restructuring plan that is expected to include a swath of store closures, putting thousands of jobs at risk. The company is also thought to be looking to slash its rent bill. Poundland said the details would be communicated 'in due course'. Poland-based Pepco, which bought Poundland in 2016, had been looking at options for the outlet since late last year in order to focus on its more profitable Pepco brand, at a time when Poundland was facing tough competition from other discount chains and in the face of increased wage costs. Stephan Borchert, the chief executive of Pepco Group, said the sale 'marks an important milestone in our strategic plan to move away from FMCG [fast-moving consumer goods] and focus predominantly on Pepco, our higher margin clothing and general merchandise business'. Pepco reportedly received interest in Poundland from others, including the restructuring specialist Hilco and Modella Capital, the new owners of WH Smith's high street business. However Pepco said last month that any sale of Poundland would not result in 'major proceeds' for investors as Poundland might not make a profit in the last financial year. Even at a time when consumers are watching their spending, budget chains such as Poundland have been having a particularly tough time as a result of growing competition from supermarkets such as Tesco, Aldi and Lidl, as well as the expansion of rival groups such as Savers, The Range and Home Bargains. Discount retailers such as Poundland have slim profit margins, giving them little room to absorb extra costs such as the increase in national insurance contributions, which took effect in April, at the same time that sales growth is slowing as UK households rein in their spending. Poundland was founded in 1990 with its first store in Burton upon Trent. It became popular for offering value products ranging from food and cosmetics to homeware and stationery, with all items originally priced at £1. It moved away from its £1 model in 2019, bringing in what it called a new pricing structure, although in recent months it has tried to win back customers by increasing the number of £1 products it sells.
