"This past quarter demonstrated we are capable of delivering growth despite the fast-changing business landscape. After a challenging February and first two weeks of March, retail demand began to stabilize, and April proved the best month of the past period in terms of sales. Despite the high base effect of last year, we have seen strong revenue growth (+35% year-on-year) in the second quarter. Moreover, sales growth in e-commerce has also accelerated quarter on quarter (+48% year-on-year). Also, gross margin has further widened year on year. We boast a powerful product range and strong recognizable brands, and we deliver engaging marketing communication campaigns. This makes us optimistic about the future", commented Marcin Czyczerski, President of the CCC Group Management Board.

First Quarter Results

In the first quarter of fiscal 2022, which ended on April, the CCC group reported an increase in revenue of 33%, totalling 1.9 billion Polish zloty (413 million euros), on a comparable basis to the same period of last year. E-commerce sales accounted for 55% of the total revenue. The group noted that it achieved growth across all segments and that its spring-summer was well received by the customers.

In this period, CCC brand posted revenue of 790 million Polish zloty (172 million euros), up by 40%, Eobuwie revenue grew by 13%, totalling 747 million Polish zloty (162 million euros), Modivo's turnover was up by 67%, reaching 162 million Polish zloty (35 million euros), and DeeZee’s increased by 5% to 26 million Polish zloty (5.7 million euros). The one-year HalfPrice business posted revenue of 119 million Polish zloty (26 million euros) in the quarter, being responsible for 6% of total sales.

The group also informed that this quarter achieved its "second-highest" quarterly gross margin in the last three years, respectively, 49.2%, which reflects an increase of 5.9 percentage points, as compared to a similar period of the prior year. EBITDA profitability "more than doubled" year-on-year, totalling 110 million zloty (24 million euros), while the EBITDA margin was 5.8%.