Pepco Q3 revenues hit €1.1bn amid Poundland sale
The Pepco board has also announced that it is embarking on a share buyback scheme to the tune of €50m (£43.1m)
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Pepco has revealed that its revenues rose 7.7% to €1.1bn (£950m) for the third quarter ended 30 June 2025, a record for the company in Q3, excluding Poundland.
The company completed a deal to sell the Poundland brand to Gordon Brothers for £1 on 12 June 2025. As a result it created ‘New Pepco Group’ comprising the Pepco and Dealz brands.
Pepco delivered a Q3 LFL revenue increase of 2.4%, the brand’s third consecutive quarter of LFL growth. It stated that this performance was driven by continued strategic execution, with benefits from better availability, a sharper price focus on its best-selling items and improved product ranges.
The company had net new openings of 45 Pepco and Dealz stores in the period, largely representing Pepco openings in the CEE region. Overall, ‘New Pepco Group’ operated 4,276 stores at the end of the third quarter.
The Pepco board has also announced that it is embarking on a share buyback scheme to the tune of €50m (£43.1m).
As a result of this, the company stated that its full year outlook remained unchanged, expecting FY25 revenues and underlying EBITDA to see year-on-year growth in the high single digits. Dealz is also expected to deliver in line with previous disclosure, with FY25 EBITDA of around €30m (£25.9m).
CEO 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. 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.
This outstanding performance at Pepco, the engine of the group’s earnings potential, was driven by improved availability, a focus on price leadership of its best-selling items and improved product ranges, which supported our continuous improvement of LFL sales and volume growth in the period.
He added: “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.”
