LPP has delivered on its 2025 plan – record profits at every level and investments in technology and logistics as the foundations for the Group’s further growth

• The LPP Group closed 2025 with a very strong financial performance, combining dynamic revenue growth to PLN 23 bn (21% YoY in constant currencies) with improved profitability.
• Positive growth was evident at all profit levels: EBITDA rose by 31% YoY, EBIT by 37% YoY, whilst net profit for the year increased by 36%.
• These results confirm the Group’s ability to maintain operational efficiency, which is key to sustaining profitability, stable results and consistency in implementing its long-term development strategy.
• These strong results allow the Group to share its profits with shareholders for the fifteenth consecutive year. The Company has recommended increasing the dividend to PLN 900 per share in line with the growth in profits.
• The company has also confirmed the effectiveness of its omnichannel model, maintaining a double-digit growth trend throughout the year in both the offline channel (+22% YoY in constant currencies) and the online channel (+19% YoY in constant currencies), which now accounts for 28% of sales.
• The Group’s strong financial position enabled it to achieve a record level of CAPEX of PLN 3.2 bn in 2025, whilst investments in logistics, robotisation and new technologies have prepared the company for the next phase of growth.

LPP has reviewed the first year of implementing its new growth strategy, which focuses on rapidly scaling the Sinsay brand whilst maintaining the Group’s stable profitability. The intensive expansion plan resulted in the opening of over 1,000 new LPP brand stores during the year and entry into six new international markets, including the particularly promising region of Central Asia. As a result, the Sinsay brand network exceeded 2,300 stores last year, and the LPP Group’s total retail space increased by 25% YoY. The effectiveness of the chosen direction is confirmed by very strong financial results – in 2025, the LPP Group’s revenue exceeded PLN 23 bn (i.e. a 21% YoY increase in constant currencies and 19% on a reported basis). Parallel double-digit sales growth in the online channel (19% YoY) and offline channel (22% YoY) demonstrates the effectiveness of the Group’s omnichannel model.

– We had a challenging year, which in practice was a test of our operational capabilities in the face of very ambitious development plans. A year ago, I felt that we were embarking on a new chapter in LPP’s history. It is precisely this ambition that drives us towards further growth; however, the trust of shareholders and the market is built not on declarations, but on results achieved consistently year after year. Today, looking at the financial results and profitability levels, I am proud of where this path is taking us. At the same time, I know that behind this result lies, above all, a year of very hard work by the entire organisation – strong operational discipline, a focus on implementing projects and cost control. I believe that the work we have done provides a solid foundation for further profitable growth and the achievement of our long-term goals – comments Marek Piechocki, CEO of LPP.

The Group’s priority of maintaining profitability has translated into improved results across all key metrics – in 2025 EBITDA rose by 31% year-on-year to PLN 5.4 bn, operating profit increased by 37% year-on-year to PLN 3.3 bn, and net profit stood at PLN 2.4 bn, representing a 36% year-on-year increase. The positive trend was consistently evident in every quarter and resulted from further scaling of operations, cost discipline and the maintenance of stable margin levels – including an annual gross margin of 55.6%, supported, among other things, by a high proportion of full-price sales and a favourable exchange rate for the zloty.

– We are all the more pleased with this year’s positive results, particularly in terms of profit, as they were achieved against a backdrop of very ambitious growth and record-breaking investment. The strategy adopted a year ago required our full commitment and operational excellence in every area – from financial stability, through logistics, to technology. That is precisely why the Group’s CAPEX exceeded a record PLN 3 bn, of which over PLN 1.3 bn was allocated to logistics development and automation. This has allowed us to maintain control over the growing scale of our operations, but also to lay a strong foundation for further expansion and the building of an efficient and technologically advanced organisation, which currently utilises AI in almost all areas of its operations – comments Marcin Bójko, Vice-President of the Management Board of LPP.

In 2025, the company focused on investments supporting the scaling of operations, increased operational efficiency and improved cost predictability. AI-based solutions played a key role, utilised, amongst other things, in product content creation, customer service, collection design, offer personalisation and sales network development. This resulted in the acceleration of selected business processes, increased sales and the ability to scale the organisation without the need for a proportional increase in the Group’s operational resources. At the same time, in response to growing volumes, the company expanded its warehouse space and invested in the automation and robotisation of logistics.

LPP Logistics expanded its fleet of robots supporting warehouse operations more than sixfold, from 555 to over 3,500 units in total across three locations in Poland and Romania. As a result, the company significantly increased the throughput of its fulfilment centres (e-commerce warehouses), shortened order fulfilment times and improved operational flexibility, laying the groundwork for further dynamic growth. In November, another e-commerce warehouse was launched in Romania, which further increased operational capacity and streamlined the processing of online orders, whilst the lease agreement for a distribution centre signed at the end of the year in that country will strengthen support for the Group’s stores in the South-East European region.

The expansion and modernisation of the logistics infrastructure, together with the use of modern technological solutions, support the Group in effectively managing its growing sales network. Following last year’s launches – including in Uzbekistan, Georgia and Albania – the number of stores across all brands has now exceeded 3,700. The expanded stationary stores network, in turn, plays a key role in the omnichannel model, as best illustrated by the Sinsay brand. Although the mobile app accounts for over 80% of sales here, it is the synergy between channels that delivers the greatest value, with customers using both solutions purchasing as much as five times more frequently. Therefore, in the coming periods, the Group intends to consistently implement the objectives of its adopted strategy, increase its presence in foreign markets, with a particular focus on Central Asia, supported by further technological advancements.

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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 46 markets worldwide. The company has a chain of over 3,700 stores with the total area of over 3 million m2 and distributes the products to 3 continents every year. LPP also plays an important role as it provides employment to nearly 63 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.