Pepco Group reported a 4.3% rise in first-quarter revenue, reaching €1.4 billion, driven by resilient trading at its namesake brand. The company noted strong December sales despite a highly competitive promotional season. However, performance at the Dealz chain remained a drag on overall results, with like-for-like revenue falling 7.7% during the three months ended Dec. 31, 2025.

Group gross margin expanded by 360 basis points to 49.4%, matching the final quarter of fiscal 2025. CEO Stephan Borchert credited Pepco’s performance for the encouraging start to the year. Dealz faced operational disruptions during an October and November replatforming following the sale of Poundland, though trading recovered in December. The company continues to exit the fast-moving consumer goods category.

Pepco opened 51 net new stores, all under the Pepco brand, bringing the total estate to 4,410. Dealz store count remained unchanged at 344. Looking ahead, the group plans to open roughly 250 net new Pepco stores in fiscal 2026. Full-year guidance was reiterated, forecasting 6% to 8% revenue growth and at least 9% underlying EBITDA growth.