LPP Group reports very good sales. Third consecutive quarter with profit growth and improved profitability

• In the third quarter of this year, LPP’s revenue exceeded PLN 6 bn, which represents a 22% increase YoY. The Group’s sales for the first nine months of this year amounted to PLN 16.6 bn (+20% YoY). .
  
• The quarter was marked by very good sales in the physical stores, which resulted in positive LFL for most brands.
• LPP’s online sales grew faster than the market, reaching PLN 1.7 bn in the quarter (+21% YoY) and maintaining the upward trend observed since the beginning of the year.
• Thanks to its sales results, a favourable gross margin of 57.6% and cost discipline, the Group maintained high profitability at every level, i.e. EBITDA, EBIT and net profit, for the third quarter in a row.
• Double-digit YoY growth during Black Friday confirmed the stability of demand in this key retail period and is a good sign for the end of the year.
• The target for 2026 is to increase revenues to approximately PLN 28-29 bn while maintaining the company’s profitability and PLN 2.6 bn in capital expenditure.

The third quarter of 2025 brought LPP accelerated profit growth: EBITDA amounted to PLN 1.7 bn (+48% YoY), operating profit to PLN 1.2 bn (+61% YoY) and net profit to PLN 800 million (+39% YoY). Thus, the Group recorded another consecutive quarter of growth at every level of its results, confirming its operational stabilisation and consistent improvement in efficiency. The key factor was good sales of +22% YoY, including PLN 1.7 bn generated in the online channel (+21% YoY). The increased customer interest in LPP brands is also confirmed by over 22% growth in physical store sales and positive like-for-like sales (LFL) indicators at +4.3%.

– The past quarter was very successful in terms of sales and margin, which we improved by 1 pp compared to the same period last year. Over 20% YoY revenue growth was visible across all channels, confirming both the relevance of our collections and the effectiveness of our shopping formats. Online and offline synergy remains crucial, especially during periods of peak trade. We are pleased with the Black Friday results not only because of the record sales level of +32% YoY, but also because they show that we are operating efficiently with growing volumes. These results provide a stable basis for achieving further development goals while maintaining cost discipline and profitability – comments Marcin Bójko, Vice-President of the Management Board of LPP.

One of the main factors supporting profitability in the third quarter was the gross margin of 57.6 per cent, achieved thanks to good full-price sales and the strong Polish zloty. At the same time, the company significantly improved its operational efficiency, as evidenced by a 9% YoY decrease in the SG&A/m² ratio, resulting from cost discipline and strategic measures in the area of logistics process automation. As a result, total cost growth was lower than sales growth, which allowed for an improvement in profitability YoY, despite the challenging market environment.

The financial results for the third quarter and the positive outlook for the last months of the year create favourable conditions for the company to implement its development plans. From August to the end of October, 232 stores were opened, including 200 Sinsay stores, and in recent months the brand made its debut in two foreign markets: in October in Azerbaijan and in December in Moldova. The growth in the scale of LPP’s operations, concentrated on its youngest brand, is visible in all key regions, with the largest increase in the number of stores recorded in South-Eastern Europe.

– The strategic direction of our development plans remains unchanged, and the Sinsay brand continues to be the main driver of the Group’s growth, both in terms of scale and operating results. At the same time, we are adjusting the pace of expansion to market conditions, analysing various scenarios and choosing the best tactics to tap into Sinsay’s potential. We remain flexible and ready to accelerate as soon as the environment becomes favourable. An example of activities aimed at optimising potential are the tests of the mini-store format. We recognise its potential, and initial observations are positive. We will make decisions regarding wider implementation after confirming the sustainability of the effects in the longer term – comments Marcin Bójko.

The implementation of the next stages of the strategy and the scaling of operations in the coming years will be supported by investments in logistics infrastructure and solutions to improve supply chain management. In October this year, the LPP Group launched an e-commerce warehouse in Romania with an area of 65,000 sq m and a fleet of nearly 1,100 robots. A new distribution centre is planned in the immediate vicinity of the facility, which will strengthen the company’s activity in South-Eastern Europe as early as the second half of 2026. The completion of the expansion of the distribution centre in Brześć Kujawski and further investments in robotic solutions are also planned for next year.

The fourth quarter of this year is likely to be the most intense period of the year for LPP, both in terms of forecast sales and planned openings. By the end of January, the company plans to launch 350-400 new stores of all brands and end the financial year with revenues of at least PLN 23 bn.

The Group’s goals for the coming periods are equally ambitious. In 2026, LPP expects revenues of approximately PLN 28-29 bn and capital expenditure of PLN 2.6 bn, while maintaining current profitability levels. The assumptions also include stabilisation of the gross margin and costs towards the levels indicated for 2025. These goals are part of the Group’s long-term development plan, focused on strengthening the scale of operations and financial stability in the coming years. By the end of 2027, the company intends to increase its revenues to approximately PLN 33-34 bn, while maintaining a gross margin in the range of 53.5-54% and continuing to exercise cost discipline. These plans mean that the company wants to translate the approx. 20% annual revenue growth into profit growth, which, in line with its current practice, it intends to systematically share with its shareholders.

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LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central Europe. For 30 years, it has been successfully designing and selling the collections and accessories in Poland and abroad. LPP manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay, whose offer is available today in stationary and online stores in 45 markets worldwide. The company has a chain of over 3,400 stores with the total area of over 2.8 million m2 and distributes the products to 3 continents every year. LPP also plays an important role as it provides employment to over 54 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.