LPP jumps to record high after Q3 beat, margin guidance hike

LPP SA

12/12/2025 08:51

** Polish fashion retailer LPP's LPPP.WA shares jump around 10% to a record high after its third-quarter adjusted core profit beat market expectations and it hiked its margin guidance for 2025

** Trigon analyst Grzegorz Kujawski notes the results were supported by a better-than-expected gross margin and lower costs

** He also points out to a 14% quarter-on-quarter drop in inventory to an "optimal" level and an updated strategy to 2027 with lower capital spending, saying it creates more room for dividends

** "Given the higher-than-expected Q3 results and the raising of guidance for 2025, we expect a positive market reaction," he said in a note

** J.P.Morgan says that the upgraded its gross profit and EBITDA margins outlook implies 5-16% upside to current consensus EBITDA estimates for 2025-2027

** Stock hits an all-time high of 19,350 zlotys; if gains hold it will see its best day since March 2024

(Reporting by Marta Maciag)

((Marta.Maciag@thomsonreuters.com))