Poland's CCC shares slide on rising inventory levels

Modivo SA

08/08/2024 09:56

** Shares in Polish fashion and footwear retailer CCC
 CCCP.WA  drop around 7%, with analysts pointing to concerns
over a large rise in inventory levels
    ** "The negative reaction, in my opinion, results from such
a disproportionately large increase in the level of stocks,"
says Erste Group's Krzysztof Kawa
    ** CCC said the 57% y/y increase in the level of stock in
the CCC segment is driven mostly by a shift towards higher share
of high margin licensed brands in the product portfolio, as well
as building assortment to support wholesale growth, and
expansion of retail space
    ** HalfPrice's inventory rose 74% to support rapid store
network expansion, CCC said
    ** "In the face of still subdued consumer demand, such a
decision to significantly increase the level of stocks seems
surprising and to some extent disappointing, which in my opinion
is behind this negative reaction," Kawa adds
    ** Trigon analyst Grzegorz Kujawski says that higher level
of stock poses the question of margin trajectories in the coming
quarters


 (Reporting by Rafal Wojciech Nowak and Tymon Miller)
 ((tymon.miller@thomsonreuters.com))