Revenue up 8.8% at constant FX in 51 weeks to September 21
Core earnings at top end of high single-digit growth estimate
Shares jump to highest since May 2024
Recasts with CEO comments, adds share move in paragraph 2, CEO quotes in 3-4, background in 5
By Marta Maciag and Julia Kotowska
Sept 25 (Reuters) - Pepco Group PCO.WA will focus on developing digital tools such as a mobile app and a loyalty programme to support in-store shopping, its CEO said on Thursday, after the discount retailer reported higher revenue for the bulk of its fiscal year.
Its shares jumped as much as 14% to 25.56 zlotys, their highest since May 2024 and the biggest gain on Warsaw's blue-chip .WIG20 index.
"What we haven't done yet is to support our customers with a digital environment... this is my number one focus," CEO Stephan Borchert told Reuters.
SEES CORE EARNINGS AT TOP END OF GUIDANCE
Borchert said Pepco was developing tools such as the mobile app to support the roughly 35 million customers who visit its stores monthly.
The digital focus comes as the retailer pivots to its higher-margin, core Pepco brand, which sells clothes and general merchandise, following the sale of its Poundland chain in June.
The group, which trades in 18 countries across Europe and also owns the Dealz chain, said its revenue for the 51 weeks to September 21 was up 8.8% at constant currencies, with Pepco's like-for-like sales up 2.7%.
It confirmed full-year guidance for revenue to exceed 4.5 billion euros ($4.9 billion) and said it expected core earnings towards the top end of its estimate for high single-digit growth.
Pepco's board also decided to launch a second tranche of its share buyback programme in October.
(Reporting by Marta Maciag and Julia Kotowska. Editing by Anna Pruchnicka and Mark Potter)
((Marta.Maciag@thomsonreuters.com;))