LPP records Q1 sales growth, reveals positive outlook

Polish apparel maker LPP Group, owner of brands Sinsay, Reserved, Cropp, House and Mohito achieved revenues of 4.3 billion Polish zloty, up 18.3 percent or 25.5 percent in constant currencies.

The company said in a statement that a higher revenue was generated due to the growth of sales in both online and traditional channels. The company also achieved 23.3 percent higher online revenue due to the development of mobile apps and a broader product offer dedicated to online stores.

The group’s traditional stores recorded a 21.5 percent growth due to the floorspace growth with 112 new store openings and positive LFLs among almost all brands and 7.5 percent total for the group. The Sinsay brand revenue of 2.1 billion Polish zloty, increased 54.1 percent.

The group recorded a 23.9 percent revenue growth in Poland and 19.4 percent abroad due to successful collections, improved consumer sentiment and the dynamic development of the network. Outside Poland, LPP achieved the highest sales growth in Romania and Czech Republic.

The group generated gross profit of 52.1 percent, 2.5 pp higher than a year earlier and net profit of 277 million Polish zloty compared to 112 million Polish zloty in the previous year, with net profitability of 6.4 percent versus 3.1 percent in the previous year.

Considering the risks and opportunities, LPP expects revenue for the financial year 2024 to reach 21 billion Polish zloty, with a year-on-year growth in the traditional sales segment and the online channel. The company anticipates a 25 percent increase in floorspace, prioritising the development of Sinsay brand stores.

While implementing its plans for 2024, the company forecasts positive outlook for the second quarter, resulting from the positive response to the summer collection by customers and sales growth of 19 percent in constant currency, from May 1, 2024 to June 10, 2024, as well as the implementation of the planned store openings in the second quarter.