Very good profitability, high cost efficiency and yet another period of dynamically growing profits. LPP is consistently implementing the Group’s development plan

• The Gdańsk-based company’s revenues in the second quarter of 2025 amounted to PLN 5.6 bn, up 17% YoY. This is the result of exploiting the potential of the omnichannel model – a combination of the development of e-commerce and the expansion of the physical network.
  
• In the first half of 2025, the company maintained high double-digit sales growth in both channels – both in the physical network (+19.1% YoY) and online (+19.7% YoY).
  
• Thanks to the prudent implementation of its development plan and maintaining cost discipline, LPP generated PLN 1.2 bn in EBITDA (+17% YoY) and PLN 689 m in operating profit (+13% YoY) in the second quarter of this year.
  
• The company consistently implemented its expansion strategy, resulting in 296 new store openings in the second quarter, including 253 Sinsay stores. As a result, its physical network exceeded 3,000 stores.
• The e-commerce channel accounted for almost 25% of LPP’s sales and generated PLN 1.4 bn in revenue. This is the result not only of the positive reception of the collection, but also of investments in the development of mobile applications, including the introduction of new functionalities supporting the Group’s ROPO (Research Online Purchase Offline) and reverse ROPO strategy.
• In the second quarter, the company consistently implemented its development plans for its physical network in Central and Southern Europe, while announcing new openings in Central Asia, where it entered the market at the beginning of August.
• The very good results of the second quarter, including the positive reception of the Back to School collection and the dynamic opening of Sinsay stores, allow LPP to maintain its plans for the current financial year.

The second quarter of this year, as announced by the Group, was a period of intensive work on the implementation of the company’s development strategy while maintaining profitability and high sales dynamics. The results for the past period confirm that the company has successfully implemented its plan, achieving revenue of PLN 5.6 bn (+17% YoY), with double-digit growth in both traditional and online channels. At the same time, a rational approach to the implementation of development assumptions and maintaining cost discipline allowed LPP to generate PLN 1.2 bn in EBITDA (+17% YoY) and PLN 689 m in operating profit (+13% YoY) during this period.

The good results for the second quarter are also the outcome of a sound policy of new store openings. Between May and the end of July, the company launched 296 new locations, the vast majority of which were under the Sinsay brand. The expansion of the store network has resulted in an increase in the Group’s retail space, which grew by 23% YoY and amounted to over 2.6 m square metres at the end of July. Of this, 63% was accounted for by stores located outside Poland. It was there that the growth rate of retail space was highest in the second quarter of this year, at +33% YoY.

– The solid results of the second quarter, combined with an intensive opening policy, are the result of our announced expansion strategy, whose primary goal is to maintain the company’s profitability. The key issue in achieving our goals remains maintaining effective cost discipline and working on the efficiency of our traditional network’s development. We have an intensive third quarter ahead of us, and the largest accumulation of new stores is expected at the end of the year – emphasizes Marcin Bójko, vice-president of the management board of LPP.

Growth in foreign markets remains an important factor supporting the company’s further development. Central and Southern Europe continues to be an important direction for the Group’s expansion. In recent months, the Gdańsk-based company has expanded its presence in Kosovo, strengthening its market position there. Following the successful debut of Sinsay in February this year, it launched stores for all brands in its portfolio. In line with the assumptions of its largest development plan to date, LPP is also expanding in the Central Asia region. At the end of the second quarter, the company completed preparations for its debut on its 43rd market, Uzbekistan, and at the beginning of August, the first Sinsay store was opened there. There are also plans to significantly increase its presence in Kazakhstan. In the third quarter, Sinsay will also debut in Azerbaijan and Georgia, and in early 2026 in Moldova.

LPP’s favourable second quarter results are also due to the high growth rate of online sales, which increased by 14.5% compared to the same period last year and recorded an almost 20% YoY increase in the first half of 2025. In the second quarter, online purchases accounted for nearly 25% of the company’s total turnover. This growth was supported by mobile applications, which not only influence sales dynamics but also strengthen customer loyalty by enabling the seamless integration of online and offline channels. Features such as in-store order collection with additional loyalty benefits support the Group’s ROPO (Research Online, Purchase Offline) and reverse ROPO strategy. Customers collecting their orders in the store often made additional purchases, which contributed to increased sales. The Sinsay app is currently available in 12 markets, including Lithuania since 2025, and accounts for as much as 80% of total online sales. The Mohito app, launched two years ago, expanded its availability to the Slovak market in the second quarter of this year.

An integral part of the app is the Sinsay Club loyalty programme, which in just two years since its launch has become the most popular loyalty programme in the Polish clothing sector. According to a CAWI survey conducted by the Minds & Roses Research Institute on behalf of Mastercard Advisors, 33% of respondents who had purchased clothing in the last 12 months indicated Sinsay Club as the programme that engaged them the most. Thanks to the consistent handling of the programme’s loyalty points both in stores and online, it significantly increases sales conversion.

Both expansion and the development of online sales require constant strengthening of the logistics infrastructure. In response to growing volumes, the LPP Group is consistently expanding its own distribution network with automation and robotics solutions based on artificial intelligence algorithms that support management systems and the flow of goods, increasing productivity by up to 50%. This allows the company to shorten delivery times, increase operational flexibility and more efficiently handle the growing number of orders in key markets in Central and Southern Europe, as well as reduce the cost intensity of its stores per square metre.

– The visible decrease in SG&A per square metre by 9.4% YoY confirms the effectiveness of our cost discipline, and maintaining full control over expenses, despite intensive expansion, proves the efficiency of our operational activities, which in the second quarter translated into maintaining very good profit dynamics, including double-digit EBITDA growth. All this confirms our belief that the development course we have chosen is the right one and allows us to look to the future with optimism – emphasises the vice-president of the management board of LPP.

The company’s goal for the rest of the year remains the stable and profitable development of its physical network, while simultaneously strengthening online sales. These activities have a positive impact on the recognition of brands from the LPP portfolio, both in Poland and on foreign markets. The strong results of the second quarter, combined with a good start to the third quarter, give LPP grounds to maintain its annual plans for sales, margins and capital expenditure. The results achieved not only confirm the effectiveness of the strategy pursued so far, but also provide a solid prognosis for the Group’s further development.

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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 43 markets worldwide. The company has a chain of nearly 3200 stores with the total area of over 2.6 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.