Steinhoff - comment

Following the sudden departure of Pepco’s CEO, the company is announcing a profit warning for the year, along with sweeping changes in Pepco’s management. The E-Europe-focused retailer is experiencing a drop in sales - we think this could be the onset of competitive pressures following its meteoric success. As a result, the MD of Pepco is also stepping down and in comes a team from Poundland - with experience in taking more difficult decisions… EBITDA 2023 is now expected to be just above flat YoY, which implies falling LfL sales. Since May the shares have lost half their value.