Pepco shares climbed sharply after management unveiled a special, one-time share buyback program valued at as much as €400 million. The purchase will be executed via a proportional tender offer on the Warsaw Stock Exchange with an offered price of 41.76 PLN per share - above the market price and serving as a near-term attractor for holders.
The announcement helped lift the stock by 4.6% to 40.88 PLN during the trading session. Investors reacted to the combination of the repurchase plan and a string of recent corporate milestones that together reinforce the group’s capacity to return capital and its operational momentum.
In its Q3 FY2026 trading update released days before the buyback, Pepco reported revenues of approximately €1.09 billion, excluding Dealz, which corresponds to growth of 8.5% at constant currency. At the same time, the company raised its full-year gross margin outlook to around 51%, up from a prior forecast just above 49.4%, and guided for underlying EBITDA to grow in the mid-teens.
CFO Willem Eelman characterized the 51% gross margin target as conservative on the back of strong trading in May and June, a remark that signalled management’s comfort with the upgraded target. Separately, the group completed the sale of Dealz Poland to Modella Capital on July 13 for a nominal 1 PLN after receiving Polish antitrust clearance, a move that simplifies the portfolio and supported the decision to pursue a sizeable capital return.
Analysts’ stances added further weight to the market response. Citi Research retained a buy rating with a 40 PLN price target, while Trigon DM upgraded its recommendation, providing additional validation to the company-specific catalysts driving the session’s gains.
The broader trading environment on the Warsaw exchange was constructive, with the WIG index having advanced more than 46% over the past twelve months and showing continued positive momentum in recent weeks. By contrast, U.S. equity benchmarks were softer on the same day, with both the S&P 500 and the Nasdaq finishing lower, indicating that Pepco’s move was predominantly driven by its own developments rather than a global risk-on market shift.
Taken together, the premium tender offer, the clarified strategic position after exiting Dealz Poland, and the upgraded full-year guidance helped propel Pepco shares to an intraday 52-week high of 40.95 PLN, reflecting increased investor confidence in the retailer’s operational recovery and financial trajectory.
Key points
- Pepco launched a proportional tender offer up to €400 million at 41.76 PLN per share, prompting a 4.6% intraday rise to 40.88 PLN.
- The company posted Q3 FY2026 revenue of approximately €1.09 billion (excluding Dealz), an 8.5% increase at constant currency, and upgraded its full-year gross margin target to around 51%.
- The sale of Dealz Poland to Modella Capital for 1 PLN and supportive analyst actions underpinned market optimism; the WIG index has gained over 46% in the past year, providing a favorable local backdrop.
Risks and uncertainties
- Investor participation in the proportional tender offer is uncertain - the ultimate impact on share count and per-share metrics depends on tender participation rates.
- Although management described the 51% gross margin target as conservative, actual results may vary and future trading periods could differ from the strong May and June performance cited by the CFO.
- Macroeconomic or market shifts outside the Warsaw exchange - illustrated by weakness in U.S. indices on the same day - could weigh on sentiment irrespective of company-specific positives.