April 22 (Reuters) - European discount retailer Pepco Group on Wednesday raised its full-year 2026 profit guidance, citing robust trading and improving margins. Last year, the group sold its
Pepco Increases 2026 Profit Outlook Amid Strong Trading and Margin Improvements
Pepco Group’s Upgraded Financial Forecasts and Strategic Moves
Profit Guidance Raised for 2026
April 22 (Reuters) - European discount retailer Pepco Group on Wednesday raised its full-year 2026 profit guidance, citing robust trading and improving margins.
Restructuring and Focus on Core Brand
Last year, the group sold its struggling British Poundland business and placed its German unit into insolvency to stem losses and concentrate on its higher-margin Pepco brand.
Key Financial Upgrades
EBITDA Growth Expectations
• The company now expects underlying core profit (EBITDA) to grow by a low-teen percentage, up from a previous forecast of at least 9%
Net Income Forecasts
• It also lifted its net income growth forecast to at least 50%, up from a prior 25%
Drivers Behind the Upgrade
• The upgrade follows a strong customer response to its Spring/Summer collections, the company said
• Pepco said its net income forecast was also boosted by a change in its depreciation policy, with an estimated pre-tax impact of around 40 million euros ($47 million)
Future Plans and Expansion
Upcoming Announcements
• The company will outline further details on its store network and Western European expansion when it reports half-year results on May 21($1 = 0.8536 euros)
Reporting and Editorial Credits
(Reporting by Alicja Surdy; Editing by Matt Scuffham)
