Polish footwear and fashion retailer CCC recently announced a remarkable surge in its first-quarter earnings, with profitability soaring across all its business segments.
Preliminary earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached 304 million zlotys (US $ 76.41 million), more than tripling from 89 million in the same period last year. Revenue for the February-April quarter climbed by 9 per cent year-on-year to 2.26 billion zlotys, propelled by the success of its newest brand, the off-price chain HalfPrice, as well as its flagship CCC brand.
In a concerted effort to reduce debt, the group managed to decrease costs by 1 per cent while expanding retail space by 7 per cent during the quarter.
“The first quarter was not a race for revenue, but for profitability, which is a priority for us,” Chief Executive Dariusz Milek, who is also the group’s founder and biggest shareholder, said in a statement.
Gross margin notably improved by 5.1 percentage points to 51.6 per cent.
Looking ahead, the retailer plans to finalise the refinancing of its CCC business unit, including securing funds from the European Bank for Reconstruction and Development, by the middle of the year.
