Strong sales momentum in both channels and double-digit profit growth – LPP summarises the first quarter of this year

• In the first quarter of 2025, the Gdańsk-based company recorded strong double-digit sales growth in both the traditional channel (+19.9% YoY) and online (+25.1% YoY).
• Tapping into the omnichannel sales model’s potential and the positive reception of LPP’s spring collections translated into PLN 5bn in revenue between February and April, representing a 24% increase YoY in fixed currencies.
• Thanks to maintaining cost discipline and a rational approach to the implementation of the development plan, the company returned to double-digit profit growth, generating PLN 938mn EBITDA (+18% YoY) and PLN 464mn operating profit (+13% YoY).
• Double-digit sales growth was also driven by record increases in e-commerce. Online sales in Q1 2025 reached nearly PLN 1.5bn, accounting for almost 30% of the Group’s sales.
• LPP’s goal for 2025 remains the stable and profitable development of its physical network based on the scalable Sinsay concept and high-quality formats and locations. In the second quarter, the company plans to launch 300 new stores.
• After a successful debut in Albania and Kosovo in the first quarter of this year, the next direction of the Group’s expansion will be Central Asia, including strengthening Sinsay’s position in Kazakhstan and opening the first stores of the brand in Uzbekistan, Azerbaijan, and Georgia.
• The three-year plan to double revenues and expand the sales network will be supported by technologies using AI algorithms, as well as development in the area of logistics, including investments in robotisation and increasing warehouse space.

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.

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.

Offline sales grew by 19.9% YoY and online sales by 25.1% YoY, allowing the first quarter of 2025 to end with revenues of PLN 5bn, which represents a 24% increase in fixed currencies YoY.

Profitability control remains the priority for the Gdańsk-based company’s priority remains as it enables growth while maintaining solid financial results and the company’s position as a dividend-paying company.

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 1bn in EBITDA (+18% YoY) and PLN 464mn (+13% YoY) in operating profit 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 – comments 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 omnichannel 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 Gdańsk-based 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% YoY, exceeding 2.5 million m2. 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 2025Q1

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.

– 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 – explains Marcin Bójko.

What undoubtedly supports the company in achieving this goal is new technologies. Solutions developed within the LPP Group, using artificial intelligence algorithms, allow the potential of a given location to be assessed on the basis of historical data, thus reducing the risk of wrong decisions.

AI also provides significant support in merchandise management and allows for differences in the functioning of stores in different regions to be taken into account. Thanks to such proprietary tools, LPP is now able not only to improve customer service quality, but also to streamline investment processes without a proportional increase in costs.

Operational efficiency and increased productivity are, in turn, the results of the implementation of automation and robotisation in logistics. In the first quarter of this year, the company continued the process of equipping its warehouse facility near Bydgoszcz with autonomous robots and expanded its distribution centre in Brześć Kujawski.

The implementation of investment activities in logistics supported by technological solutions aimed at improving the allocation of goods, more efficient use of warehouse resources and supply chain management are tasks whose optimisation remains crucial for the Group in order to ensure the stable achievement of its growth targets. This year, the company plans to spend a record amount of over PLN 3bn on expanding its logistics potential, developing its physical network and modern technologies.

– The launches we completed in the first quarter are only the beginning of our plan for this year. The next stage will see the opening of approximately 300 new stores of all brands in the second quarter alone. The second half of this year will bring a cumulative increase in the physical network coverage. We are consistently following our chosen path and implementing our business scaling plan, and the results for 2025 Q1 reflect our broader strategic perspective, i.e. a path of profitable growth, with a safe approach to financial fundamentals and profit sharing with shareholders – summarises the vice-president of the management board of LPP.

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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 42 markets worldwide. The company has a chain of nearly 3000 stores with the total area of over 2.5 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.