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Polish company LPP's online sales climbs by 25.1% in Q1 FY25
In the first quarter of 2025, the Gdansk-based company recorded strong double-digit sales growth in both the traditional channel by 19.9 per cent and online by 25.1 per cent respectively.
The beginning of the current financial year at LPP was marked by the laying of strong foundations for the implementation of the long-term development strategy announced by the company in April.
In Q1, Poland's LPP saw strong double-digit sales growthâ€'19.9 per cent in-store and 25.1 per cent onlineâ€'driven by its omni-channel strategy. The company opened 136 new stores, expanding its network to nearly 3,000 locations. LPP is expanding into Central Asia and Eastern Europe while focusing on profitability, flexible strategy execution, and optimising store formats.
The plan to strengthen the physical network while leveraging the potential of e-commerce, which was launched last year, resulted in double-digit sales growth in both channels in the period from February to April.
Operational efficiency and optimal use of infrastructure built with long-term business goals in mind allowed the company to return to double-digit profit growth and generate nearly PLN 1 billion (~$26.83 billion) in EBITDA in the reporting period.
'We have had an intense but successful start to the year in terms of sales. We are pleased with the positive reception of our spring collections, especially given the subdued consumer sentiment across the market. Meanwhile, the double-digit revenue growth achieved by LPP, both in the traditional and online channels, serves to prove that we not only have an excellent understanding of customer expectations, but also respond flexibly to changing market conditions. Our priority remains a broader view of the market and the intensive, yet stable and secure development of the group in the coming years,' said Marcin Bójko, vice-president of LPP for finance .
The first quarter sales results and the return to double-digit growth in quarterly profits confirm that the ambitious business plans for the coming years will be implemented on a solid financial basis. The group maintains its target of doubling its omni-channel revenue and expanding its physical network by 2027, while maintaining profitability at the declared level.
Consistently pursuing this goal, in the first quarter of this year, the company opened 136 new stores, including 112 Sinsay stores. As a result, the group's physical network now comprises nearly 3,000 locations, and the total sales area increased by 22 per cent year-over-year, exceeding 2.5 million square metres. The effectiveness of LPP's network development and the maintenance of strong budgetary discipline are reflected in SG&A costs, which grew more slowly than revenue in the first quarter.
LPP is also continuing its expansion into new markets. Following successful debuts in Albania and Kosovo in the first quarter of this year, the company plans to open 20 more Sinsay stores in both countries.
Following Central and Southern Europe, the company's next expansion direction will be Central Asia, including a return to the development of its sales network in Kazakhstan, where 60 new Sinsay stores will open by the end of the year. The brand will also debut in Uzbekistan, Azerbaijan, and Georgia, and in the first quarter of 2026 it will enter a new European market, Moldova, the company said in a press release.
'We are closing the first quarter of this year with the conviction that the development strategy based on the unique and scalable Sinsay concept remains unchanged in the long term. However, the key to achieving our goals is not the number of stores opened in the coming quarters, but what has been our advantage in recent years, namely the flexible adaptation of our assumptions to the realities we encounter at every stage of our business plans. Acting in this vein, we already know that our overriding goal will be to maintain profitability and eliminate factors that could dilute it. Hence, our current goal is to optimise the product mix in selected smaller stores and focus on the formats and locations that offer the highest quality in the long term,' explained Bójko.
Fibre2Fashion News Desk (RR)
