PLN 334 million was made clean by the LPP Group in the first quarter of the 2025/2026 financial year (February-April)-the company said. It's 21 percent more than a year ago in the same period, the first quarter record for the company IO 33 percent. more than the analysts expected. You can talk about a big surprise.
The actions reacted positively, although it is difficult to talk about euphoria. They gain 2.7 percent, although for a moment they even broke the exchange rate of 15,000. PLN, growing 5.3 percent Why not harder? All because of the more cautious forecasts of the company itself.
The LPP Group expects in a financial year 2025/26 about PLN 23-24 billion in sale and 53-54 percent. gross margin – the company said in the report. In April, the management provided that revenues would amount to about PLN 25-26 billion, so we are talking about cutting expectations. This is the effect of low temperatures observed in May and June both in Poland and other European countries, which reduced the shopping tendencies of the spring and summer collection-it was given in the presentation.
Offline sales would increase by about 20-25 percent, and online by approx. 20-25 percent. In 2025, the company assumes an increase in stores by approx. 25-30 percent, focusing mainly on development of Sinsay stores. The company said in the presentation that there are plans to open 1 thousand. 200 showrooms, of which 1 thousand 100 Sinsay brands. Earlier, the opening plan for this year assumed 1 thousand. 500 new Sinsay stores.
Poland gives most of the profits
Since the profits are growing, the development strategy seems to check. It's just that these profits are born not where the company invests the most.
In Poland, the company increased the network during the year by only 83 new stores and currently has 1 thousand of them. 216, but in southeastern Europe there were 162, and in Eastern Europe and the Middle East as many as 175. More than in Poland salon stores have also opened the region of Central Europe, i.e. in the Czech Republic, Slovakia and Hungary, because 107. Meanwhile, Polish stores are responsible for the increase in profits.
LPP investment map
|
LPP SA / LPP SA
The operational result of national sales points increased by 28 percent. yaws up to PLN 332 millionfor a slight plus, i.e. from a loss of PLN 22 million for a profit of PLN 5 million, 83 stores in Western Europe were derived and … this is actually the end of significant successes. Well, profits in the Czech Republic, Slovakia and Hungary have improved, but it is only from PLN 9 to 15 million. As you can see, here the levels are still small, incomparable with what the company earns in Poland. In addition, operating profits in southeastern Europe dropped from PLN 112 million to PLN 51 million. That is probably why there are investments in network development to achieve a scale effect similar to Poland and spread fixed costs into higher revenues, i.e. more effectively to use the possibilities of warehouses and at all a logistics network.
It should also be noted that in the Polish LPP market, LPP is favored by what is conducive to all importers, i.e. the strengthening zloty exchange rate. In this way, goods can be sold mainly in Asia with a larger margin.
The LFL (LIKE-FOR-LEGE) sales indicator, which shows sales in stores after filtering with newly opened stores, is very important, because it can be seen if the points are located in optimal locations. And here it is positive, because this indicator went up by 4.3 percent. RDR in the first quarter, while in the fourth quarter of last year. It was only +1.4 percent A year ago, however, in the first quarter it was also strong, because LFL sales rose by 7.5 percent, and a year earlier by 5.5 percent. The gross margin on sales has slightly dropped to year to 54 percent. from 55.1 percent a year earlier.
Now Sinsay is a flagship brand
Not Reserved, but the Sinsay network is now the flagship brand of the LPP group and its development is a priority. At 2,000 959 stores at the end of April this year. Sinsay had 1 thousand 611 in this year, this number increased by as much as 570. It provided 56 percent in the first quarter. revenues to the LPP group. Meanwhile, Reserved is not only not developed, but even rolled up. She shrunk by nine salons in 12 months and has only 354, bringing 28 percent. revolutions.
Despite the reduction of the number of points, Reserved increased the turnover in the first quarter by 22 percent. yoy to PLN 1.4 billion, and Sinsay has grown by 55 percent. year to year, this turnover increased by only 31 percent. up to PLN 2.8 billion. At the same time, the speed in Poland of Reserved and Sinsay networks grew at a similar pace, by 24 percent. rdr.
Sinsay had very high dynamics in Western Europe (Great Britain, Germany, Italy), where its turnover was increased by as much as 102 percent. up to PLN 97 million. Other markets had 33 % development.
In the case of Reserved Also, it was the turnover in Western Europe that grew the fastest because by 31 percent rdr. The lowest increase (+15 percent yaws to PLN 96 million) this network had in the Baltic (Lithuania, Latvia, Estonia), in the Middle East there was a decrease (by 7 percent yaws to PLN 82 million) and on the remaining European markets dynamics were over 20 %.
Other LPP brands, i.e. Cropp, House and Mohito, have already gone slightly. Cropp and Mohito turnover decreased by 7 and 5.5 percent, respectively. yaws in the first quarter, and the house increased by less than 2 percent.
In addition to the Polish, the group already generates most of the revenues from larger investments in the development of the network. Rotation also increases faster outside the borders. As long as in Poland they increased by 18 percent. yaws up to PLN 2.2 billion in the first quarter, it is 25 percent abroad up to PLN 2.7 billion.
