CCC: “We fell prey to speculators – and to our own ambitions.” The footwear giant says it has learned its lesson

Poland is not a country that routinely attracts the attention of Western media. That is why the May cover of The Economist – lauding the country’s economic progress over recent decades – reverberated so strongly.

Major foreign outlets delve into specific Polish companies even less frequently. Yet one of them recently picked up CCC on its radar – though not in the context the company would have hoped for. It was a ripple effect of a high-profile report in which a short seller betting against the company’s stock accused it of fraud.

“After the Ningi Research attack, our advisers told us to brace for further moves against us – that short sellers would keep ‘pulling at the thread.’ We believe that this is why, for the first time, a London capital-markets news service took an interest in us, judging from the nature of the questions their reporter sent,” says Łukasz Stelmach, CCC’s CFO.

Questioning the exit from Russia

The company stresses that the questions it received had nothing to do with its new business model, the recovery in profitability, or its expansion into Italy and Spain. Instead, they focused on the allegations raised by Ningi – claims CCC addressed on the very first day and continued to explain in the weeks that followed the February 2022 Russian attack on Ukraine.

The main accusation was that CCC had artificially inflated its EBITDA by PLN 267 million (approx. EUR 61 million) to meet its annual earnings guidance. According to Ningi, this was supposedly achieved by, in simplified terms, “stuffing” unsold inventory into MKRI, the operator of the Kaes and Worldbox retail chains. CCC calculated that the real figure amounted to no more than several tens of millions of PLN.

“Beyond those debunked charges, the questions also touched on a commercially insignificant issue from years ago: our exit from Russia. We rejected the suggestion that we continue to benefit from operations in that country. We pulled out immediately in 2022. That was not the time to negotiate the optimal option – we accepted the offer made by our then local manager. Besides, Russia accounted for barely around 1% of our revenue at the time. It was a marginal business with no meaningful impact on the group’s results. Bringing this up years later feels to us like yet another attempt to undermine our credibility,” says Łukasz Stelmach.

He notes that this line of questioning was coupled with fresh insinuations that the company had taken control of MKRI prematurely – an allegation Ningi tried to substantiate by pointing to personal ties. “The Office of Competition and Consumer Protection (UOKiK) asked us for an explanation, reviewed our response, and has already issued a positive decision. But fact-checking never reaches the same audience as the original accusations,” Stelmach remarks.

Investors ask about allegations and rumors

Those betting against CCC – keen to undermine its credibility – are, to some extent, getting what they want. This is especially true among investors outside Poland, who naturally lack the depth of local knowledge available to their domestic counterparts.

CCC was among the companies that PKO BP brought to New York in November for a conference with U.S. investors. Although the company does not disclose details, XYZ has learned that the very first questions CCC faced concerned… the Ningi Research report. At another recent international conference, participants pressed the company about an anonymous post on X accusing the chain of failing to pay rent in shopping centers. Such circumstances make trust-building difficult.

“Analysts and long-term investors who have been following us for years tell us outright that they treat the Ningi report – and the often anonymous social-media posts attacking us – as noise. Or, more precisely, as disinformation, manipulation, and intentional misleading. None of it undermines, in their view, our long-term strategic direction,” says Łukasz Stelmach.

He notes that there is also a cohort of investors hunting for market opportunities, looking at CCC through a short-term lens. “Unfortunately, they are more vulnerable to the actions of players betting on a drop in our share price. LPP faced a similar attack recently, and we also saw significant short positions – mainly from London-based funds, for example – in Żabka and InPost,” the executive adds.

Changes in a kaleidoscope

CCC has been through exceptionally turbulent years. The closure of retail stores during the COVID-19 pandemic pushed the company into losses and sent its share price tumbling – from over PLN 100 (approx. EUR 24) to around PLN 30 (approx. EUR 7). Yet it adapted to an era dominated by online shopping, and the recovery showed in its results. Investors poured PLN 1.5 billion (approx. EUR 350 million) into its subsidiary eObuwie, and the group launched a new retail format: HalfPrice.

Another challenge soon emerged: high debt in an environment of rising interest rates, coupled with surplus inventory that was costly to clear. A deep restructuring and refinancing effort paid off. From autumn 2023 to May 2025, CCC’s stock went on a remarkable run – from roughly PLN 40 (approx. EUR 9.50) to PLN 240 (approx. EUR 57)—lifting its market capitalization to around PLN 19 billion (approx. EUR 4.4 billion). The improvement stemmed in part from three share issues between 2020 and 2025 totaling approximately PLN 2.5 billion (approx. EUR 580 million). CEO, founder, and largest shareholder Dariusz Miłek (33.3% stake) invested around PLN 1 billion (approx. EUR 230 million) himself.

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The issue price in the most recent offering, conducted in March, was PLN 190 (approx. EUR 45). The stock has been on a steady decline for months. Within a week, it fell from roughly PLN 130 (approx. EUR 31) to PLN 115 (approx. EUR 27), leaving the company with a market capitalization of nearly PLN 9 billion (approx. EUR 2.1 billion).

“We were among the most dynamically growing companies on the Warsaw Stock Exchange. In such circumstances, a correction is bound to come at some point. Short sellers took advantage of our rapid growth – across virtually every part of our diversified business model. They are aggressively promoting their own thesis – based on selective and, for the most part, commercially irrelevant details – about the company’s supposed problems. We reject this entirely,” says Łukasz Stelmach.

Undermining credibility – and betting on a decline

Attacks by so-called speculators are often coordinated and unfold in several stages. CCC sees this clearly in its own case, along two parallel tracks.

“First, new claims and allegations emerge, all attempting to undermine our credibility. Second, since the publication of the Ningi report, the share of investors betting on a drop in our stock price has increased. Public data show that they now account for around 12% of our shareholder base, having borrowed shares – including from Polish investors. That is a very high level,” explains Łukasz Stelmach.

At the time of the Ningi report’s publication on October 16, investors holding short positions of at least 0.5% of the shares collectively controlled 5.97% of the stock, according to KNF (the Polish Financial Supervision Authority) records. Today, that figure stands at 7.5%. Most entities sit just above the reporting threshold; only two hold at least 1% in short positions. One investor reduced its position on December 8 from 0.69% to 0.57%.

“Many people are wondering what will happen to the share price once these investors start closing their positions and returning the shares. We hope that, ultimately, it will not be Polish investors – retail or institutional – who become the source of extraordinary gains for speculative funds in London. We are professionals, and we continue to work hard to show strong results in 2026–2027 and more than make up for what we were unable to deliver this year,” the CCC vice president says.

Expert's perspective

Short sellers have already made their money on CCC

The number of CCC shares held by short sellers is at a historic high. The room for further expansion of these positions is now limited. Given the scale of the share-price decline, it is clear they have already profited. One argument for maintaining such positions is the potential removal or reweighting of CCC in the MSCI indices, which would trigger additional selling by index-tracking funds (ETFs).

But shorting comes at a cost: borrowing CCC shares carries a fee of nearly 9%. Some investors betting against the stock have already reduced their exposure in recent weeks – Millennium International Management LP and AQR Capital Management both fell below the 0.5% reporting threshold.

“CCC is one of my top picks for 2026. It is among the Warsaw-listed companies that could deliver the highest return relative to the WIG index. A 50% drop from this year’s peak is enormous – the company has already surrendered two-thirds of the gains it built over several years. I believe that more than PLN 200 (approx. EUR 48) per share was on the high side, but now I see the pendulum swinging to the opposite extreme. There is a broad consensus that the company will continue to grow. It also benefits from GDP and interest-rate forecasts. LPP’s results may act as a growth accelerator for the entire sector. If the company raises its gross-margin target on December 11, it will send a positive signal to investors.”

Sobiesław Kozłowski

Director of Research and Advisory, Noble Securities

Lessons from the speculators’ attack

The accusations of fraud coincided with the release of results that fell short of both market expectations and the company’s own ambitions. Revenues in the past quarter rose from PLN 2.8 billion (EUR 622 million) to PLN 3 billion (EUR 667 million), but profits declined: operating profit fell from PLN 328 million (EUR 73 million) to PLN 221.2 million (EUR 49 million), and net profit from PLN 158.4 million (EUR 35 million) to PLN 119.4 million (EUR 27 million).

This prompted the company to revise its full-year guidance. Instead of the previously expected PLN 12 billion (EUR 2.67 billion) in revenue and PLN 2.4 billion (EUR 533 million) in EBITDA, it now forecasts PLN 11.3–11.5 billion (EUR 2.51–2.56 billion) and PLN 1.7–1.8 billion (~EUR 378–400 million), respectively. The target for the 2026/27 financial year (February–January) was also lowered: revenue from above PLN 14 billion (EUR 3.11 billion) to PLN 13–14 billion (EUR 2.89–3.11 billion), and profit from PLN 2.8 billion (~EUR 622 million) to PLN 2.2–2.6 billion (~EUR 489–578 million).

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“We can admit when we’re wrong. For too long, we assumed we would exceed PLN 2 billion (EUR 444 million) in EBITDA this year. That expectation stemmed from the fact that in the past we were sometimes able to make up for a slower first half with a much stronger, crucial second half. We’ve come out of tougher situations before,” says Łukasz Stelmach.

He stresses that the company is currently incurring higher costs because it is securing retail space on attractive terms – an investment that will pay off in the coming years. He remains confident. “We have become a victim not only of short sellers, but also, to some extent, of our own ambitions for 2025. One of the lessons we’ve taken away is the need to set forecasts more cautiously. We will set conservative targets – with the ambition to outperform them. The second lesson is the need to tighten our corporate processes and make our communication even more transparent and precise. We are absolutely determined to avoid creating any room for speculation,” declares the CCC vice-president.

“No grounds for the share price drop or the current valuation”

At the end of October, the group operated 1,158 stores with a total floor space of 998,900 sq m. Most of the new openings announced for this year will be concentrated in the final quarter. Historically, CCC expanded its retail space by up to 100,000 sq m annually. This year, it will exceed 300,000 sq m, and next year the scale will be similar.

“We will do more than we promised the market at the end of 2024. When we presented our development roadmap through 2030, we talked about a figure closer to 200,000 sq m. We’re expanding at an exceptional pace, which is why short sellers hope they can throw a spanner in the works. But that won’t happen. We continue to deliver and maintain the goals we outlined [PLN 25 bn (approx. EUR 5.7 bn) in revenue and PLN 5 bn (approx. EUR 1.14 bn) in EBITDA, i.e. a 20% margin, in 2030],” says Łukasz Stelmach.

He sees no justification for the recent decline in CCC’s share price or its current market capitalization. He points out that the company generated PLN 1.7 bn (approx. EUR 386 m) in EBITDA over the past 12 months – which translates into a market valuation slightly above five times that figure. “Meanwhile, the market multiple for other retailers is around eight times EBITDA on average. We remain focused on executing our strategy. After an attack from short sellers, companies usually manage to rebuild trust – and the share price follows. We will do the same; we have no doubt about that,” the manager says.

Expert's perspective

The problem is profit momentum, not Ningi’s allegations

I didn’t find anything in the Ningi Research report that particularly surprised me or carried material significance. This contrasts with Hindenburg Research, which actually uncovered several issues that LPP had communicated poorly.

Ningi’s main thesis, however, was that CCC controls the company MKRI, which it does not consolidate, and “hides” PLN 300 million (EUR 63 million) in inventory there to artificially inflate results in order to meet the PLN 12 billion (EUR 2.5 billion) revenue forecast. In my view, adopting more conservative forecasts and more cautious communication would benefit CCC.

That said, the declared shift in communication strategy seems somewhat at odds with the athlete’s mindset of Dariusz Miłek [a cycling enthusiast whose youth injuries prevented a professional career – ed.], who always aims for top honors. During the conference on preliminary third-quarter results, he announced that Worldbox would reach PLN 1 billion (EUR 210 million) in revenue next year with a 20% EBITDA margin. I consider this a very ambitious target for a startup.

In my opinion, CCC can now be regarded as attractively valued compared with its peers. This does not change the fact that – to borrow another sports analogy – a company is only as good as its last race. And CCC’s recent races have not been spectacular. Moreover, I fear the current quarter could also disappoint.

For a company still primarily focused on footwear sales, November is critical in the fourth quarter. Yet at the beginning of November, consumer demand in Poland was generally weak, as indicated by platforms such as Allegro. I therefore cannot rule out that CCC’s fourth-quarter EBITDA may fall below last year’s level. As a result, the company’s shares may remain under pressure until profit momentum is rebuilt.

Łukasz Wachełko

Analyst, Wood & Company

Skepticism among some analysts

It is not only investors who have recently been viewing CCC less favorably; analysts have shown similar caution, as reflected in their actions. Janusz Pięta of BM mBank lowered the company’s target share price at the end of November from PLN 226 (EUR 47) to PLN 165 (EUR 34).

Earlier in the month, negative signals came from analysts at Erste Securities and BM PKO BP. Piotr Bogusz of Erste cut his recommendation from “buy” to “hold,” lowering the target price from PLN 283 (EUR 59) to PLN 146 (EUR 30). Piotr Łopaciuk at PKO BP issued a “sell” recommendation with a target price of PLN 105 (EUR 22). Data from investing.com show that CCC currently has ten analyst recommendations: four “buy,” four “hold,” and two “sell.”

The divergence in target prices exceeds 100%, ranging from PLN 91.7 (EUR 19) to PLN 254.6 (EUR 53). The average stands just under PLN 190 (EUR 40) – the level at which CCC shares traded in September.

Expert's perspective

CCC can only defend itself with stronger results

Neither immediately after the Ningi Research report nor with the benefit of hindsight do I see any material new information. Key issues regarding CCC’s wholesale and franchise operations have often been discussed at conferences, and I have asked about them repeatedly. Information on these topics is also included in the company’s periodic reports. Perhaps the most interesting aspect was the accounting treatment of furniture for Worldbox stores, discussed at the post-results conference - but this has no impact on the group’s overall strategy.

The Ningi report did not help the company’s share price, but I do not believe it determined it. When evaluating CCC, I focus on other factors. For instance, I had doubts about the company achieving this year’s forecast until it eventually lowered it. Its results this year, particularly after adjusting for one-off events, remain under pressure.

Weather plays a significant role, especially in footwear sales. Expansion costs are substantial, and stores typically need at least a year to reach normalized profitability. Once the company improves its results, investor sentiment will have a foundation for change. CCC can only defend itself through higher sales and improved profitability.

A shift in communication regarding targets and the factors affecting their achievement would clearly benefit the company. For now, it is difficult to assess how to treat its forecast for next year. For prudence, I would adopt a more conservative approach. Uncertainty is high on two levels.

First, when expanding sales space by several dozen percent per year, one can only be certain of costs – not revenues. Second, no one can predict the weather. Take this year as an example: I do not recall a November 1 this warm; September was unusually warm, while July was exceptionally cold. Weather has a particularly strong impact on footwear sales. Let’s hope such a pattern does not repeat.

It is also worth noting that the company is developing the unique Modivo benefits platform, and innovative ideas inherently carry elevated risk.

Sylwia Jaśkiewicz

Managing Director, Research & Recommendations Department, DM BOŚ

Worldbox remains a black box

Experts cite several reasons for their concerns, including weaker-than-expected growth in the company’s results and risks arising from very rapid expansion – especially with HalfPrice. They also question whether the footwear giant can perform equally well in apparel with the Worldbox network.

“Some analysts already factor the positive impact of Worldbox into their valuations. We understand that others still see it as a black box. After all, no store is yet operating in its final form, with the intended product portfolio structure [almost the entire assortment is expected to be based on licensed and proprietary brands – ed.]. Nevertheless, we are confident that this segment will ultimately deliver an EBITDA margin of around 20%,” says Łukasz Stelmach.

He highlights CCC’s extensive and solid experience in apparel through the HalfPrice network and recalls that skepticism also surrounded its launch. “Today, there are no objections to this concept. It is a fast-moving locomotive, with a gross margin well above 50%. On one day this month, HalfPrice achieved higher sales than CCC as a whole. That is a symbolic event. It does not mean it will happen regularly, but it confirms the assumptions underlying our strategy,” the CCC vice president concludes.

Fireside chat

XYZ: How popular is CCC among individual investors, and why?

Michał Masłowski, Vice President of the Association of Individual Investors: CCC consistently ranks among the most popular, if not the most popular, companies with individual investors. Several factors explain this.

CCC is a very large company that has historically generated solid returns for investors, and its stock is eventful. It does not remain in a so-called sideways trend for years; rather, the share price rose from around PLN 40 (EUR 8) to over PLN 200 (EUR 42) in a relatively short period, before falling back toward PLN 100 (EUR 21).

The company is also highly recognizable, with stores in virtually every shopping mall. There is no need to explain what the business does.

Another key factor is the popularity of CEO Dariusz Miłek. His charisma, communication style, and vision generally make investors like him.

How has perception of CCC changed since the Ningi Research report?

I believe very few people remember it or factor it into their decisions to buy or sell CCC shares. That said, I recall CEO Miłek stating at a conference that he does not let such issues pass – so I would like to see him definitively address Ningi’s aggressive conclusions.

CCC reached its peak share price in May and has been in a downward trend since. The report in mid-October caused a “shock” that lasted only a few days. Further declines likely reflect the slowing growth momentum that the company had demonstrated in previous quarters. For large companies like CCC, institutional investors primarily determine valuation, and the current results clearly do not appeal to them. A return to the right growth trajectory is essential.

How can the negative share price trend be reversed?

If I knew the formula, I’d have a publicly listed company worth billions. That said, it is important to emphasize that recovery takes time. CCC is not a startup that can change strategy overnight; it is a large organization where every adjustment takes time. Nevertheless, improving the margin by just one percentage point can make a significant difference. CCC has the potential to quickly turn investor sentiment around. It has a strong track record of success, and I believe investors – both individual and institutional – want CEO Miłek to succeed. Nobody truly wishes him the opposite. The company, however, must improve results and restore hope among shareholders.

Michał Masłowski

Vice President of the Association of Individual Investors

Key Takeaways

1. Attack. Ningi Research, a firm that profits from declines in selected companies’ stock prices, accused CCC of fraud in October, including artificially inflating results to meet forecasts. While experts approached the sensational claims skeptically, and the company responded to them in detail, CCC still feels under attack from so-called short sellers. One example cited is the interest of a foreign journalist who repeats Ningi’s concerns and suggests that the company continues to benefit from its Russian business, which it sold in 2022.
2. Value. Over just over a year, CCC’s share price increased sixfold – by May 2025, its market capitalization approached PLN 20 billion (EUR 4.2 billion). Since then, it has halved. The company’s vice president sees no fundamental basis for the recent decline in shares and market cap. He notes that the current market capitalization corresponds to just over five times EBITDA over the past 12 months, while the average for other retailers is eight times. He is confident that CCC will rebuild investor trust. For now, particularly abroad, the company faces constant questions about often anonymous allegations.
3. Changes. CCC assures that it has learned from the speculators’ attack. It intends to set more conservative forecasts and communicate in an even clearer and more precise manner – leaving less room for rumors. The company acknowledges that it has been a victim not only of short sellers but, in part, of its own ambitions.