Poland's LPP sets 2027 sales target, bets on Sinsay expansion
11/12/2025 17:34
Dec 11 (Reuters) - Poland's biggest fashion retailer LPP LPPP.WA on Thursday targeted annual revenue of up to 34 billion zlotys ($8.5 billion) by 2027, driven by the expansion of its budget brand Sinsay.
For 2025, LPP narrowed its revenue forecast to between 23 billion and 23.5 billion zlotys, from a 23-24 billion zloty range it had guided for in September, a company presentation showed.
The new guidance came as the company posted a third-quarter net loss after taking a write-down related to the sale of its former Russian business.
WHY IT'S IMPORTANT?
As Poland's biggest fashion retailer, LPP is pursuing a rapid European and Central Asian expansion.
This strategy is focused on its budget brand Sinsay, which aims to compete with fast-fashion retailers and is targeted to account for the majority of sales growth.
BY THE NUMBERS
LPP now targets a core profit margin of 21.5-22.5% for 2027, lifting the forecast from the 18-19% range it had set in April.
The Gdansk-based company also raised its 2027 gross margin forecast to 53.5-54% from a previous 51-52% forecast.
LPP said it plans to open about 950 Sinsay stores in 2026 and another 1,000 in 2027.
It reported a third-quarter net loss of 18 million zlotys, reversing a 579 million zloty profit from a year ago.
Third-quarter revenue rose 17.8% year-on-year to 6.14 billion zlotys, driven by a 4.3% rise in like-for-like sales, with group's gross margin impring by 2.8 percentage points to 57.6%.
The group opened 232 stores in the third quarter.
($1 = 3.6556 zlotys)
(Reporting by Marta Maciag; Editing by Matt Scuffham)
((Marta.Maciag@thomsonreuters.com))