Wittchen (WTN) Q2 2025 earnings summary

Executive summary

• Revenue in 2Q25 was 112.2 mln PLN, down 0.5% year-over-year, with a gross margin of 60.9% and net profit of 5.4 mln PLN, down 53.8% year-over-year.

• Revenue for H1 2025 was PLN 205.9m, flat year-over-year, with net profit down to PLN 9.7m from PLN 16.7m in H1 2024.

• E-commerce sales grew 14% year-over-year and reached PLN 112.3m (54.5% of total), while stationary and B2B sales declined.

• Foreign sales increased 22% year-over-year to PLN 42.1m, now 20.5% of total revenue, with 17 own stores abroad.

• EBIT and EBITDA margins declined significantly due to price pressure and increased competition, especially in the luggage segment.

Financial highlights

• Gross margin on sales was 60.9%, down 1.2 p.p. year-over-year.

• EBIT for 2Q25 was 9.4 mln PLN, down 43% year-over-year; net profit was 5.4 mln PLN, down 53.8% year-over-year.

• Operating profit for H1 2025 fell to PLN 13.4m from PLN 23.4m year-over-year; net margin decreased.

• Net cash from operations was negative at PLN -0.1m, down from PLN 34.9m in H1 2024; cash at period end was PLN 9.7m, down from PLN 30.6m.

• Inventory levels rose 30% year-over-year, with inventory per m² up 28%.

Outlook and guidance

• Focus on product lines with higher margins and more effective marketing spend.

• Continued optimization of marketplace cooperation and logistics, with a new investment planned for early 2026.

• Management plans to continue online and international expansion, with focus on cost control and product mix.

• Targeting a return to growth through cost efficiency and product evolution.

• Noted weaker demand in physical stores, prompting more aggressive sales and promotional actions.