VRG (VRG) Q4 2025 earnings summary

Executive summary

• Group revenues in 4Q25 rose 9.7% YoY to PLN 487.7m, with both apparel (+6.7% YoY) and jewellery (+11.9% YoY) segments contributing to growth.

• Net profit for 4Q25 increased 10.6% YoY to PLN 51.2m, with a net margin of 10.5%.

• Gross profit on sales grew 7.8% YoY to PLN 274.6m, with a group margin of 56.3% (+1.0pp YoY).

• SG&A costs rose 7.4% YoY, but their share in revenues fell to 40.9% (IFRS16).

• The acquisition of Lilou was completed, expanding the jewellery segment and integrating 49 boutiques and an online store.

Financial highlights

• EBITDA for 4Q25 was PLN 99.3m, down 4.7% YoY; EBIT was PLN 64.9m, down 6.8% YoY, impacted by PLN 10.8m in inventory write-offs.

• Apparel segment EBIT fell 8.3% YoY to PLN 16.8m; jewellery segment EBIT dropped 5.7% YoY to PLN 46.1m.

• Online sales reached PLN 78.7m (+11.1% YoY), representing 16.1% of group sales.

• Net debt decreased to PLN 13.4m at 4Q25-end from PLN 59.3m a year earlier; no long-term debt.

• Group inventory grew 4.1% YoY, with apparel inventories down 23% YoY and jewellery inventories up 18.3% YoY.

Outlook and guidance

• 2026 targets maintained: continued revenue growth in both segments, further gross margin improvement, and sustained profitability in the apparel segment.

• Planned capex for 2026 is c. PLN 56.4m, focused on new store openings (especially jewellery), modernization, and infrastructure.

• Integration of Lilou expected to deliver annual EBITDA of c. PLN 17.7m by 2027, with 5–10 new locations per year.

• Continued expansion in Hungary, with W.KRUK reaching break-even and further store openings planned.