Pepco - comment

Poundland had a better Q3 than we expected with +9% LfL growth. Pepco, meanwhile, came in right on target with €831m of revenue, down -1.2%. The market seemed half prepared for it but overall didn’t like it. Shares now trade in the €35 area, even as management professed that recent trading in Eastern Europe had recovered to a positive LfL level. Pepco have been growing at breakneck speed and the fear ought to take hold that perhaps that growth is coming down.