Polish fashion retailer LPP's Q1 profit rises 20%, beats forecast
June 12 (Reuters) - Poland's biggest fashion retailer LPP (LPPP.WA), opens new tab on Thursday reported a 20% year-on-year rise in its first-quarter net profit, boosted by higher sales and favourable exchange rate movements.
Net profit came in at 334 million zlotys ($90.49 million), versus analyst forecasts of 246 million zlotys.
Operating profit for the quarter increased by almost 13% year-on-year to 464 million zlotys, while gross margin rose to 54.0%, up 1.9 percentage points from the previous year.
As of April 30, LPP had 2,959 stores, 1,611 of which are Sinsay stores, its budget brand which aims to compete with fast fashion retailers like Inditex's (ITX.MC), opens new tab Bershka.
In 2025, the company plans to expand its retail space by about 25-30%, focusing mainly on the development of Sinsay brand, aiming for around 1,100 stores.
The Gdansk-based retailer, whose stores are mainly located in Central Europe, now forecasts revenues of approximately 23-24 billion zlotys for the 2025 financial year, anticipating growth in traditional retail through increased store space and positive like-for-like sales, as well as continued expansion in its online channel.
Under its three-year strategy announced in April, LPP aims to double its annual revenue to 40 billion zlotys by 2027, with Sinsay set to account for 75% of the group's total sales.
The company also plans to expand its store network to around 7,500 outlets by the end of 2027.
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