Poland's LPP posts more than two-fold Q1 net profit growth, maintains forecast
13/06/2024 07:01
June 13 (Reuters) - Polish fashion retailer LPP
LPPP.WA reported a more than two-fold jump in first-quarter
net profit late on Wednesday, helped by growth in both in online
and traditional store channels.
Its net profit in the February-April quarter jumped 148%
year-on-year to 276 million zlotys ($68.8 million).
Revenue rose 18.3% to 4.3 billion zlotys, or 25.5% in
constant currency terms.
The group maintained its 2024 revenue target of about 21
billion zlotys and 52%-53% gross sales margin.
It said its confidence was boosted by a good second-quarter
outlook as its summer collection was received well, while sales
from May 1 to June 10 rose 19% in constant currency.
LPP, which trades in 39 countries including Poland, Italy
and Portugal, added 112 stores and had 2,382 at the end of the
quarter. It plans to double its network by 2026, led by its
budget brand Sinsay.
Sinsay posted the highest revenue among LPP's businesses,
both in nominal terms and growth rate, driven by new store
openings.
Revenue at Sinsay came at 2.1 billion zlotys, a 54% increase
year-on year, representing 49% of LPP's total first-quarter
sales.
"The intensive openings of new Sinsay traditional stores,
attractive prices offered by the brand and the economic
situation favourable for the value-for-money segment...are the
factors that contributed to its revenue growth," LPP said in a
statement.
($1 = 4.0097 zlotys)
(Reporting by Marta Maciag; Editing by Varun H K)
((Marta.Maciag@thomsonreuters.com;))