Polish fashion retailer LPP confirms annual revenue goal of up to $5.5 bln
25/09/2024 17:26
GDANSK, Sept 25 (Reuters) - Poland's largest apparel
retailer LPP LPPP.WA confirmed its full-year revenue target of
20-21 billion zlotys ($5.2-5.5 billion) on Wednesday after
posting a flat second-quarter net profit, as rising costs of
stores and distribution offset higher sales.
BY THE NUMBERS
Second-quarter net profit edged up a little over 1% to 444
million zlotys from a year earlier, with sales up 9% to 5.01
billion zlotys.
The modest uptick was offset by a 27% jump in the costs of
stores, distribution, and overheads to more than 2 billion
zlotys, with the company citing the development of its store
network, logistics spending and personnel costs.
OUTLOOK
The group expects third-quarter sales to rise 32% year on
year on a constant currency basis. It also plans to open 140 new
stores in the three-month period.
WHY IT'S IMPORTANT?
LPP, the biggest retailer in Poland, is rapidly expanding
into European markets, especially in the Central-Eastern and
Southern Europe regions, which accounted for a third of total
revenue in the second quarter.
CONTEXT
The expansion comes after the company sold its Russian
business in June 2022, after Russia invaded Ukraine.
($1 = 3.8291 zlotys)
(Reporting by Mateusz Rabiega; Editing by Kirsten Donovan)
((Mateusz.Rabiega@thomsonreuters.com; +48 58 769 67 57;))