European discount retailer Pepco Group has today reported a slowdown in underlying sales growth in its latest quarter, saying it faced a challenging trading environment in April and May, particularly in Central Europe.
The Warsaw-listed group, which owns the Dealz, Pepco and Poundland 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% due a strengthening performance in fast moving consumer goods.
Total group revenue increased 12.5% on a constant currency basis to €1.37 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.
