Record-breaking results of LPP for 2019 and over a half of revenues from abroad
• The value of LPP’s sales for the whole 2019 exceeded PLN 9 bn. This result is 13% better than in 2018.
• For three quarters in a row, the value of foreign sales of LPP was higher than domestic revenues. The company’s offer is already available on 39 markets.
• Last year, online sales constituted over 11% of the entire Group’s revenues and, as announced, exceeded PLN 1 bn.
• LPP simultaneously invests in its traditional sales network. The total retail area of the Polish manufacturer’s stores exceeded 1.25 m square metres.
The Polish clothing company definitely ended Q4 2019 and the previous calendar year on a positive note. The company’s revenues for the last three months amounted to over PLN 2.7 bn, which is a 15% y/y increase, and in annual terms, the group’s total sales increased by 13%. and exceeded PLN 9 bn. The clothing manufacturer from Pomerania ended the year with an operating profit of PLN 880 m , which is 16% higher than in 2018. The good economic standing of the company was positively influenced by maintaining the margin at the level of 53.4% per year and further investments in technologies supporting optimization of logistics processes.
– We have definitely had a successful year. For the first time in our history, revenues abroad exceeded those achieved in Poland. In 2019, they accounted for approximately 51% of the Group’s sales. This is a significant step in the development of LPP. We are particularly satisfied with the younger brands reporting better and better results. Our collections enjoy an unwavering interest on the eastern markets, i.e. Ukraine, Romania and Russia. Our new locations, such as Finland, also give reasons for satisfaction. A good signal for us is also the positive LFL which we have recorded on such extremely competitive markets as Germany and the UK. – comments Przemysław Lutkiewicz, Vice President for Finance. – The increasing level of exports in our revenue structure shows not only that the collection has been adapted to the expectations of an international customer. Above all, it is a good step towards achieving our goal of building the position of LPP as a global brand – he adds.
In parallel, the past year in LPP was marked by omnichannel development. The company continued to develop its brick-and-mortar sales network, which after 2019 was extended by Bosnia and Herzegovina and Finland. In both countries, the company established its presence with the offer of all 5 brands. At the end of the year, the retail space of brick-and-mortar stores amounted to 1.25 m square metres and was already available on 25 markets.
In 2019, LPP also successfully launched an online offer in 14 new countries. Thus, the collections of the Polish manufacturer are available in this channel on 30 markets.
– We are pleased with the results of e-commerce sales, which reached over PLN 1 bn in revenue last year – as much as 11.4% share of the Group’s result. On foreign markets, the growing interest in online shopping is particularly noteworthy. Examples of countries that achieved results above this average are Romania, Hungary, the UK and Slovakia – stresses Przemysław Lutkiewicz. – This is also a good signal for us not to slow down with investments in the expansion of the distribution network dedicated to online sales. We anticipate that the planned projects will not only allow us to maintain this trend, but will also help us to adjust our offer even better to the needs of our customers – adds Vice President of the Board of LPP.
The year 2019 also saw intensive investments in technologies and the development of an integrated logistics system, adapted to the multi-channel sales model. Last year, the company implemented RFiD technology, i.e. a system of electronic tags, in its flagship brand, Reserved. A new Fulfillment Center in Romania was also launched, and is dedicated to handling e-commerce orders in the South East European region.
The year 2020 promises to be equally intense for the company. Another brand with a planned implementation of electronic tags is Mohito. In the first quarter, the supply network of LPP will be expanded by another Fulfillment Center – this time in Slovakia. The company is also preparing to start construction of a distribution centre in Brześć Kujawski, where about 1000 people will find employment. This year’s direction of foreign expansion of the Polish clothing manufacturer will be North Macedonia, which will see the launch of the offer of all five brands in the brick-and-mortar stores network.
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LPP SA is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1700 stores with the total area of over 1 million sq.m. The online offer of the brands collections is available on 30 markets. Through a global supply chain, the Polish clothing producer distributes over 200 million pieces of clothing to three continents. LPP plays another important role as it employs over 25 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.