VRG (VRG) Q1 2026 earnings summary

Executive summary

• Group revenues in 1Q26 rose 21.4% YoY to PLN 356.5m, driven by Lilou acquisition and growth in other brands.

• Strong start to 2026 with well-received Spring/Summer apparel collection and double-digit growth in watch sales; Lilou brand consolidated into the group.

• Retail network expanded by 7.1% in area, with a 34.8% increase in jewellery and a 4.9% decrease in apparel.

• Online and offline sales both showed robust growth, with online sales up 31.8% YoY and accounting for 17.7% of group revenues in 1Q26.

Financial highlights

• Gross profit on sales increased 26.4% YoY to PLN 201.4m, with margin up 2.2pp to 56.5%.

• Group EBIT reached PLN 12.5m under IAS17 (PLN 14.1m under IFRS16), a significant improvement from PLN 1.6m in 1Q25.

• EBITDA rose 147.6% YoY to PLN 21.5m (IAS17) and 39.0% to PLN 52.6m (IFRS16); net result turned to a loss of -0.2m PLN from a profit of 6.0m PLN in 1Q25, mainly due to higher costs and one-off acquisition expenses.

• SG&A costs rose 20.7% YoY, including PLN 5.4m in one-off Lilou acquisition costs.

• Net debt at end-1Q26 was PLN 157.8m (+9.1% YoY, IAS17) and PLN 528.8m (IFRS16); net debt/EBITDA at 0.9x (pre-IFRS16) and 1.8x (IFRS16).

Outlook and guidance

• 2026 targets maintained: continued revenue growth, higher gross profit margin, and further operating profitability improvement.

• Planned capex for 2026 at PLN 56.4m, focused on new store openings, modernization, and business infrastructure, especially in the jewellery segment.

• Management recommends no dividend from 2025 profit to support liquidity and investment; profit allocated to reserves.

• Possible introduction of a long-term share-based incentive program under consideration.

• No financial forecasts for 2026 were published.