LPP achieves Q3 revenue growth, outlook positive

In the third quarter, LPP Group achieved revenues of 5.2 billion Polish zloty, up 19.8 percent year-on-year and by 25.2 percent in constant currencies.

The company’s online sales were up 35.7 percent due to the development of mobile apps and a broader product offer dedicated to online stores. The group recorded double-digit revenue growth of 19.4 percent in traditional stores due to 135 new store openings and positive LFLs of almost all brands and 7.5 percent for the group.

The Sinsay brand recorded revenue of 2.7 billion zloty, an increase of 43.3 percent.

The group generated a favourable gross profit margin of 54.8 percent, however 1 pp. lower than a year earlier. EBIT of 731 million zloty, declined by 8.9 percent, while operating profitability stood at 14 percent, compared with 18.4 percent in the previous year.

The group aims to achieve a revenue target of 20 to 21 billion Polish zloty, with a growth in the traditional sales segment and the online channel. The company anticipates a 23 percent increase in floorspace, prioritising the development of Sinsay brand stores. The group expects a gross sales margin in the range of 52 to 53 percent.

The company added that in implementing its plans for 2024, the group is strengthened by the good outlook for 4Q, resulting from the positive response to the winter collection by customers and the sales growth of 22.4 percent in constant currencies in the period from November 1 to December 10, as well as the implementation of the planned store openings in the fourth quarter.

At the same time, for the financial year 2025, the group expects revenues of 26 billion Polish zloty, with gross profit on sales in the range of 52 to 53 percent.