Reserved-owner LPP shows strong profit growth, but cold weather hits sales in Q1
08/05/2026 09:48
May 8 (Reuters) - Poland's biggest fashion retailer LPP LPPP.WA said on Friday its key growth brand Sinsay saw like-for-like sales fall in the first quarter due to cold weather, but strong group-wide margins should deliver high double-digit percentage growth in operating earnings. LPP operates a portfolio of brands including its flagship Reserved and budget-friendly Sinsay. The group's strategy is heavily focused on an aggressive international expansion driven by Sinsay and supported by big investments in technology. Preliminary February-April revenue rose 10% in constant currencies, while gross margin is expected to reach a record 58% to 59% in Q1, helped by pricing and a stronger zloty Sinsay's like-for-like sales slumped 6.8%, dragging the group's overall number to a 2.8% decline Other brands collectively saw a 2.2% rise like-for-like Unseasonably cold weather in April hurt demand for spring-summer collections, but LPP has since seen a sharp rebound, with sales up more than 20% year-on-year in the first week of May Trigon analyst Grzegorz Kujawski said the results were slightly positive, with operating profit set to beat forecasts thanks to the strong margin However, Kujawski would have preferred a smaller margin with positive LFL growth, as negative figures could raise questions about competitive pressures LPP added 121 stores to its network in the first quarter, out of which 102 were for Sinsay (Reporting by Alicja Surdy, editing by Milla Nissi-Prussak) ((AlicjaEwa.Surdy2@thomsonreuters.com;))