Wittchen (WTN) Q1 2026 earnings summary

Executive summary

• Revenue in 1Q26 declined by 8.5% year-over-year to PLN 85.81m, with both online and offline sales under pressure from market conditions and external factors.

• Gross margin remained stable at 62.1%, despite lower sales and increased promotional activity.

• Operating costs rose due to higher logistics and marketing expenses, leading to a net loss of PLN 5.1m for the quarter.

• Inventory levels were optimized, decreasing by 25% year-over-year, creating room for new collections.

• The group initiated cost optimization and a review of sales and marketing activities to improve future results.

Financial highlights

• Revenue: PLN 85.81m in 1Q26, down from PLN 93.8m in 1Q25 (-8.5% y/y).

• Gross margin: 62.1% in 1Q26 vs. 62.0% in 1Q25.

• Operating profit: PLN -3.4m in 1Q26 vs. PLN 3.9m in 1Q25.

• Net profit: PLN -5.1m in 1Q26 vs. PLN 4.2m in 1Q25.

• EBITDA: PLN 4.7m in 1Q26 vs. PLN 11.8m in 1Q25.

Outlook and guidance

• Focus on improving profitability and securing funding for key investments; dividend payments suspended for 2025-2027.

• Continued development of e-commerce and optimization of the retail network.

• Product mix evolution with new collections and sustainable materials.

• Investment plans for 2026 total PLN 26.2m, including PLN 13.5m for warehouse expansion.

• Management is closely monitoring financial and operational conditions to adjust investment scale and timing.