VRG (VRG) Q2 2025 earnings summary

Executive summary

• Group revenues in 2Q25 rose 10.8% YoY to PLN 377.5m, with both apparel (+8.2% YoY) and jewellery (+13.2% YoY) segments contributing to growth.

• Revenue for H1 2025 increased to PLN 282.5m, up 8% YoY, with the strongest growth in online sales and higher sales per square meter despite reduced retail space.

• Gross profit on sales increased 12.1% YoY to PLN 214.9m, with margin up 0.6pp to 56.9%.

• EBIT improved 13.2% YoY to PLN 43.7m (IAS17), and net profit grew 1.4% YoY to PLN 28.6m (IFRS16); EBITDA rose 7.1% YoY to PLN 79.2m, with margin at 21.0%.

• Operational focus included omnichannel development, CRM and marketing automation, and product innovation across key brands.

Financial highlights

• Apparel segment revenues reached PLN 175.9m (+8.2% YoY); jewellery segment at PLN 201.6m (+13.2% YoY).

• Group revenues per m2 rose 16.6% YoY to PLN 2,580; apparel at PLN 1,727 (+19.8% YoY), jewellery at PLN 4,537 (+5.0% YoY).

• Gross profit margin for apparel increased by 1.2pp YoY to 61.8%; jewellery margin up 0.4pp to 52.7%.

• EBITDA: PLN 32.4m (H1 2025) vs. PLN 21.2m (H1 2024), +53% YoY.

• Net loss: PLN -1.9m (H1 2025) vs. PLN -12.5m (H1 2024).

Outlook and guidance

• Management expects further revenue growth in both segments, improved gross profit margins, and continued cost control in 2H25.

• Focus on attractive new collections, further floorspace optimization in apparel, and expansion in jewellery, especially in Hungary.

• Planned capex for 2025 is c. PLN 41m, mainly for jewellery segment development.

• Key risks include inflation, consumption slowdown, currency depreciation, and geopolitical instability.

• Positive drivers: expanding product offer, marketing automation, CRM, cost efficiency, and online channel growth.