Modivo Group reported a net loss of PLN 24 million in the first quarter of its fiscal year 2026, a sharp reversal from the PLN 93.1 million net profit recorded in the same period a year earlier.
Revenue for the three months ending April 30, 2026, edged up to PLN 2.43 billion from PLN 2.34 billion in the first quarter of 2025. Operating profit, however, plunged to PLN 40 million from PLN 215.5 million, signaling severe margin compression.
Regional performance and store count
Sales on the Polish market reached PLN 1.54 billion, while Central and Eastern Europe contributed PLN 755.5 million and Western Europe PLN 138.9 million. At the end of April, the group operated 1,520 stores, including 918 CCC outlets, 231 HalfPrice stores and 70 Modivo-branded locations.
The steep decline in profitability came despite the modest revenue growth. Higher cost of goods sold and increased operational expenses are likely behind the swing into the red, though the company did not provide detailed commentary in its brief statement.
Investor reaction and outlook
Shares of CCC, the parent company of Modivo, were trading higher on Thursday, up over 10% to PLN 127.05, suggesting that the market may have already priced in weaker quarterly numbers or is focusing on the group’s long-term growth potential.
The loss underscores the challenges facing fashion retailers in the region as consumer sentiment remains fragile and competition intensifies. Market watchers will be looking for more details on cost control measures and the trajectory of the second quarter.
Źródło: WNP.PL, Fot. Shutterstock
