The group, which listed on the Warsaw stock market last year, forecast underlying core earnings (EBITDA) on a constant currency basis, for full year ended Sept. 30, to come in the range of 735 million euros to 750 million euros ($714-$728 million), in line with its growth expectations.

It said group revenue rose 17.4% on a constant currency basis to 4.82 billion euros, partly driven by 516 new stores.

Like-for-like sales rose 5.2% and were up 15.5% in September, providing a strong exit rate into the new financial year.

Pepco said in its core markets of Poland, Hungary and Romania inflation in clothing and footwear was running at only around a third of the headline inflation rate.

Both clothing and food remain resilient categories in the Polish and wider Central and Eastern Europe retail sector, the company said, adding that the outlook across the UK remains "challenging" as constraints on consumers' disposable income persist.

"That said, our value-led proposition becomes even more relevant in these challenging times and continues to drive new customers to our stores, expanding our target market, across Europe," it added.

($1 = 1.0298 euros)

(Reporting by James Davey; Editing by Sherry Jacob-Phillips)