UPDATE: CCC fashion lowers 2025 outlook to PLN 11.3-11.5 bln revenue, PLN 1.7-1.8 bln EBITDA

After nine months, the group reported PLN 8.2 billion (EUR 1.9 bln) in revenue and PLN 1.2 billion (EUR 281.9 mln) in EBITDA.

As reported, the main reasons for revising the full-year outlook are the challenging business environment; unfavourable weather conditions for footwear sales for most of the year; costs related to the faster than originally planned pace of retail space development and the postponement of a large part of store openings to the end of the second half of the year, which means a shorter period of real contribution of new stores to the group's sales.

"The results for this quarter and for the whole year are below our expectations. For most of the year, we operated in a challenging business environment. In addition, we accelerated investments that will enable us to achieve our long-term strategic goals, which had a short-term negative impact on our results," said CCC's CEO Dariusz Milek, quoted in the press release.

"Therefore, we are revising our original results outlook for this year, while maintaining our strategic goals. After 2025, we are much better prepared to achieve them. We continue to believe in our business model and its effectiveness," he added.

At the beginning of the year, the CCC group assumed that in 2025, its revenues would exceed PLN 12 billion (EUR 2.8 bln) and its EBITDA margin would be 20 percent.

The group's estimated EBIT in the third quarter alone amounted to PLN 221 million (EUR 51.9 mln), a year-on-year decline of 33 percent, and EBITDA reached PLN 404 million (EUR 94.9 mln), down 16 percent year on year. Both results were below the PAP Biznes consensus.

The group's revenues in the third quarter increased by 7 percent year on year to nearly PLN 3 billion (EUR 704.7 mln). Sales at HalfPrice increased by 25 percent, at CCC by percent and at the Modivo Group by 1 percent.

Over the last 12 months, the CCC group's EBITDA margin was 16 percent, up by 2 percentage points year on year.

In the third quarter, the group's gross margin was 48 percent. Costs increased by 10 percent on the 21 percent growth in retail space.

The growth in the chain's own and franchise space totalled 85,000 square metres (against 110,000 square metres in the first half of the year), with nearly half of the openings taking place in the last month – October.

In the last quarter of the year, the group plans to open an additional 125,000 square metres of new retail space.

"2025 will be a record year for the CCC group in terms of sales network development. We will definitely exceed our original target of opening 200,000–250,000 square metres of new retail space – by the end of the year, we will have approximately 320,000 square metres more space than last year. Thus, our retail sales channels will grow by 38 percent year on year," said CEO Dariusz Milek.

At the end of October, the group's chain had 1,158 stores.

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