Steinhoff - comment

Pepco reported good sales growth, in total, as well as in constant currency and LfL, even at Poundland in the UK where net store growth has been impacted by a closure program that has approx. another quarter to go. The company is merging its different Dealz, Pepco formats in Spain to create a new hybrid format with Dealz FMCG and Pepco clothing in one. The performance is broadly in line with our expectations, but we had set those expectations mostly before inflation and Ukraine became a topic. The trading update only covers sales and not any earnings metrics, but prima facie the performance confirms expectations that the discount segment is relatively more stable than other segments will be.