VRG Group sales grow in the first half of the year

The Group successfully took advantage of the high seasonal supply in the jewellery segment

VRG S.A. sales reached PLN 102.6 million in June 2023, 8.3% less than in the same period a year earlier. Cumulatively in the first six months of this year, VRG's sales amounted to PLN 602.4 million (up 2.9% y/y).

VRG's jewellery segment recorded a 10% increase in June, with revenues of PLN 52.8 million. The Group's apparel segment achieved sales of PLN 49.7 million, 22.1% less than last year. Online channels were responsible for 9.8% of sales in June (compared to 13.4% a year earlier).

– We are observing clearly in the Group how customers are reacting to the current macroeconomic situation. Good sales results are being generated by our brands embedded in the luxury goods segment: W.KRUK in jewellery and Deni Cler in the clothing segment. A significant support for W.KRUK's sales was additionally provided by family celebrations, typical for June - weddings, engagements, christenings, etc. - says Janusz Płocica, CEO of the VRG Group. – At the same time, we experienced a reduction in traffic in stationary shops and consequently recorded lower demand for the offer of our "middle" brands. Hence the weaker year-on-year result of the clothing segment. We hope that the situation will change after the holidays, with an improvement in the economic environment.

The Group managed to improve its sales margin. The Group's margin was 56.6% in June, compared to 55.2% in the same period a year earlier. After six months of this year, the Group's margin was 54.2% (0.1 p.p. higher y/y).

In June 2023, the VRG Group's brands operated in 51,600 sq m of retail space (0.8% less than a year earlier).

The text of the current report with the results is available at the link: https://www.vrg.pl/dla-inwestorow/raporty-biezace

***

VRG S.A. (former name Vistula Group S.A.) is a company listed on the Warsaw Stock Exchange S.A. since 1993. VRG Group S.A. specializes in the design and distribution of high-quality fashion collections for men and women and jewelry. It owns highly recognizable trademarks in five major lines: Vistula, Bytom, Wólczanka, Deni Cler Milano and W.KRUK. The VRG S.A. Group focuses on brand management, apparel and jewelry design and the development of its own sales network in both main segments (apparel and jewelry).