LPP’s 1Q21/22 videoconference, 24th June (Thursday), 12.00 CEST

Dear Sir or Madame,

LPP, the leading CEE fashion company, has the pleasure to invite you to participate in its videoconference, on Thursday, 24th June, 12.00 CEST.

The CFO, Mr Przemysław Lutkiewicz, will comment on the company’s 1Q21/22 numbers and developments.

Videoconference in English will be available under the following link:

https://platforma.livingmedia.pl/lpp/210422003/

During the on-line broadcast participants will have the possibility to ask questions using chat.

______________________________________________________________________________

LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of 1.4 million sq.m. The online offer of the brands collections is available on 30 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

The economic and environmental impacts of LPP’s new packaging management policy

LPP, a clothing company, is developing further improvements in its logistics network. As part of the Control Tower project – a platform for improving supply chain management – it has implemented a cardboard boxes standardisation process. The applied solution allows for optimisation of logistic processes at the stage of transport and warehouse space management. It also makes it possible for the company to significantly reduce the use of bulk packaging and its reuse in the process of distribution of goods to stationary stores, while bringing measurable benefits to the environment. In the last six months alone, the company has recycled almost 900 thousand cardboard boxes this way, thus saving 17 thousand trees from being cut down.

The cardboard boxes standardisation process carried out by LPP is but one constituent of the company’s larger logistics project called Control Tower. It encompasses several hundred suppliers and aims at more effective use of bulk packaging in which the ordered goods reach the LPP distribution centre.

– The whole standardization process has generated measurable economic and environmental benefits. Therefore, we have reduced the use of cardboard boxes, which after the implementation of the project can be re-used several times. We eliminated the transport of not fully packed boxes, which translated into optimisation of the loading area. This, especially in times of rising freight prices and limited availability of containers, has also exerted a positive impact on our economic calculation. Standardisation also entails more efficient use of space in road transport, which contributes to savings in terms of fuel consumption. But what is most pleasing is the positive impact on natural resources. Using bulk packaging several times allows real savings on raw materials for cardboard boxes production. Over the last six months, we have saved as many as 17 thousand trees this way – explains Sebastian Sołtys, Logistics Director, LPP.

The project, run on the basis of an innovative platform dedicated to supply chain management, has also allowed for more efficient use of warehouse space by as much as ten or so percent. Owing to advanced automation solutions of the distribution centre based on the volumetric measurement of the flow of goods, a comprehensive technical monitoring of the warehouse and its key storage area – the miniload – was introduced. That, in turn, rendered it possible to measure the scale of the outcomes of the entire venture accurately. One of the outcomes was the acceleration of the process of receiving deliveries at the gate, another – a better use of space, both in the warehouse and during goods transportation. It also brought real environmental effects to the company.

While making business decisions on logistics issues, the company is also pursuing its sustainability strategy. Thanks to the standardisation of packaging among suppliers, the company has extended the project of recovery and reuse of import boxes coming from the producer and delivered to the distribution centre in Pruszcz Gdański. They are no longer sent to waste paper, but gain a second life in distribution of goods to the chain of LPP brand stores.

– Over 40 percent of cardboard boxes from suppliers arriving at our warehouse may already be reused. This way, we are currently saving about 150 thousand cardboard boxes every month, which translates into saving 2,800 trees monthly. Over the last six months, namely since the introduction of monitoring of this action, we have recovered almost 900 thousand cardboard boxes and we haven’t said our last word here – notes Sebastian Sołtys.

LPP intends to develop the project of recovering cardboard boxes for reuse and to implement it also in the newly built distribution centre in Brześć Kujawski. There, the company aims to achieve a recovery rate of up to 75%.

______________________________________________________________________________

LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of 1.4 million sq.m. The online offer of the brands collections is available on 30 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

Summary of LPP’s financial results for 2020/21

• Revenues of the Polish clothing manufacturer in the 2020/21 financial year amounted to PLN 7.8 billion and were lower YoY by almost 15%.

• This is the first year in LPP’s history in which sales abroad were higher than domestic ones in every quarter. In 2020/21, the value of exports accounted for over 56% of the Group’s total revenues.

• The Gdańsk-based company fulfilled the annual plan of PLN 2 billion proceeds from e-commerce, which means that in the past financial year revenues from this channel already accounted for over 28% of all total revenues.

• The lower than expected drop in revenues and the positive effects of activities strengthening the omnichannel sales model allowed the company to return to its investment plans.

The past surely unprecedented year was marked by the impact of the pandemic on the market and many challenges, especially in the clothing industry. However, thanks to a flexible approach in the face of the new reality, strengthened operations in the e-commerce channel, improvements in logistics and following customer expectations actively, LPP ended the 2020/21 financial year with a better result than originally expected. The company’s revenue for the last quarter amounted to over PLN 2 billion, while total revenues reached over PLN 7.8 billion, meaning a fall by 15% YoY. For the first time in its history, the Group recorded a net loss at the level of PLN 190 million.

– Last year gave us a solid survival lesson. Thanks to a financial cushion and the implementation of projects responding to the market situation, we managed to get through the toughest period in our history. In the first half of the year, not knowing what the next day would bring, we entered a crisis mode by introducing strict cost discipline in order to maintain the company’s liquidity. That time showed us that when faced with a new reality we have to be ready for different scenarios. Observing the sales results in May, June and July, we decided to unlock investment outlays in the subsequent months and implement projects that are key to the future of the company. In that regard, from the second half of the year on we focused on development in the area of logistics and e-commerce to cope with the dynamic growth in e-commerce – comments Przemysław Lutkiewicz, Vice-President of the Management Board, LPP.

The past year was a period of intensive growth in e-commerce for the Gdansk-based company. Online sales in the whole of 2020/21 accounted for as much as over 28% of the Group’s revenues. The highest proceeds from this channel amounting to almost PLN 780 million were recorded in the last quarter of the year, when online sales accounted for a record 37.2% of the Group’s revenues.

– Unfortunately, the 99% increase in e-commerce in the last quarter of the year did not offset the 23% drop in overall sales caused by temporary lockdowns in various regions – explains Przemysław Lutkiewicz.– However, we are observing sustained interest of customers in online shopping. This is visible in the double-digit dynamics of the number of visits to our brands’ websites and the triple-digit increases in the number of new and returning customers. In addition, the share of mobile devices in online shopping continues to grow. The period from November to January was yet another quarter in which more than 80% of visits were made with mobile devices, of which over 60% ended with a purchase. This is good news for us, because these statistics already correspond to global levels – adds the Vice-President of LPP.

Organisational changes supporting omnichannel sales and an inventory management policy adjusted to this model resulted in trade liabilities being the source of inventory financing for LPP for the second time in a row. The company pursued a rational inventory management policy throughout the year. This was the effect of quick adaptation of the offer to customers’ needs, limiting orders for the autumn-winter season and effective sale of collections. The Defrost project also played a significant role as it allowed for a gradual release of goods from the stores for the purpose of servicing online sales. Thus, despite market uncertainty, the company ended the year without excessive stocks.

At the end of 2020/21, the LPP offer was available on 38 markets. During that period, for the first time in the company’s history, foreign sales accounted for a greater share in each quarter, with their share in the revenue of the entire Group already amounting to over 56%.

– Last year, all our brands generated more revenue from abroad than in Poland. Also in the last quarter, for the first time Poland’s hare in the Group’s revenues fell below 40%. In the regions where we are developing our logistics network, we favourable sales results were recorded, an example of which is the Q4 revenue in Romania. Sustained interest in our offer was also visible in Serbia or Bosnia and Herzegovina. At that time, we also recorded a doubling of sales in the pan-European store says the Vice-President of the Management Board, LPP. – The important thing is that despite the decreasing share of Poland in the Group’s revenues, we observe a relation between our financial results and temporary lockdowns in Poland. In a situation where we experience periodic closures of brick and mortar stores abroad, but domestic stores remain open, we are able to make up for the foreign loss and fulfil our sales plans. However, when the situation is reversed and we have to close the stores here in Poland, it is much more difficult for us to achieve these goals. This proves that Poland is still the driving force behind our sales, and brick and mortar stores play an important role in the company’s revenues – he adds.

LPP maintained its liquidity, that is why investments in the last quarter were higher and amounted to almost PLN 300 million. At that time, the planned construction of the Distribution Centre in Brześć Kujawski was commenced and the development of the retail network continued with a floorspace increase by almost 17% y/y last year. The first stage of development of the Fashion Lab complex was also finalised, doubling the office space in Gdańsk. The company also decided to expand its e-commerce warehouse space in Russia and Romania. – Despite ending last year with a net loss of PLN 190 million, we believe that we are prepared for the still uncertain market situation. We forecast that 2021/22 will bring us further growth in online sales. We are hoping to exceed PLN 2.8 billion in revenue in this channel. In addition, we expect that after the end of the pandemic the market will see the so-called deferred demand phenomenon. This is clearly visible each time lockdowns are lifted, when customers are eager to return to brick and mortar stores. We therefore assume an optimistic market scenario of a return to normality, although understood in a different way than before – says Przemysław Lutkiewicz. – In the new retail reality, efficient logistics processes and digitalisation are of key importance, which is why, as part of strengthening omnichannel sales, we will develop retail space and invest in these areas. We will invariably focus on adapting our offer to the current needs of the customers. The budget allocated for development activities in 2021/22 is PLN 1.1 billion – he adds.

In 2021, as part of the planned development of the sales network, LPP will enter a new market, namely North Macedonia, with the offer of all five brands. Selective growth of retail space in Eastern markets is also planned. Given the growing potential for growth in the affordable fashion segment and the fact that the stationary network is an important part of the omnichannel strategy – the company will continue to develop the offline offer of younger brands in smaller towns. Continued construction of the Distribution Centre in Brześć Kujawski and implementation of the second phase of RFID technology implementation in younger brands are also planned. Bearing in mind the growing trend of shopping via mobile devices, an Internet application for the flagship Reserved brand will be launched in the near future. Additionally, a further extension of the Fashion Lab office complex in Gdansk is planned for 2021.

Despite a year focused on survival, LPP invariably continued its plans for sustainable development. Implementing the For People For Our Planet strategy for 2020-2025, the company reduced plastic consumption by another 300 tonnes, and the share of the Eco Aware collection in the entire offer has already increased to 18.6%. As part of its responsible manufacturing efforts, the company started consultations with factories in Southeast Asia to meet the set Eco Aware Production standards. The company also joined the international ZDHC initiative for chemical safety in production and the Polish Plastics Pact. Moreover, an inseparable element of LPP’s activities in the past year were charity projects, for which the company together with the LPP Foundation donated over PLN 9 million. – We are proud that despite the prevailing uncertainty we were experiencing, we were able to consistently fulfil our commitments in terms of responsible and sustainable fashion and we had the energy and enthusiasm to help others in the fight against the pandemic – says the Vice-President of the Management Board, LPP. – Caring for the environment is inherent in our DNA, so regardless of the challenges – we will develop in a sustainable way. This fact has been, is and will be an integral part of our business – he adds.

More information on the activities undertaken by LPP may be found in the Company’s integrated report for 2020/21 financial year, available at https://www.lppsa.com/zrownowazony-rozwoj/raport-roczny.

______________________________________________________________________________

LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of 1.4 million sq.m. The online offer of the brands collections is available on 30 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP speeds up RFID implementation in more brands

Due to the rapidly growing role of multi-channel sales, LPP is accelerating the implementation of RFID technology in subsequent brands. The introduction of the electronic tag to Mohito, Cropp and House brands will be carried out over 5 times faster than in the flagship Reserved brand. The plans also include the use of soft tags, which will allow achieving 100% visibility of the entire offer. This is yet another stage of the Polish clothing manufacturer’s development within the framework of the omnichannel strategy.

The new retail reality caused by the Covid-19 pandemic was an impulse for LPP to significantly speed up the implementation of projects supporting multi-channel sales. What paid off during the period of closure of traditional shops and rapid growth in online sales were investments in the area of fashion-tech and the implementation of RFID system, i.e. the electronic tags technology. That solution indeed supported the effectiveness of sales of the Reserved flagship brand at the moment of crisis. Taking into consideration the key importance of this technology in the process of integrating sales channels, the company from Gdańsk decided to implement electronic tags to Mohito, Cropp and House faster than previously planned.

Thanks to the electronic tag, the Gdańsk company is able to track the availability of goods in real time, which allows it to better control the flow of goods between warehouses and stores and, in effect, respond to customer needs more quickly and accurately. – The first wave of the pandemic showed us that we have to be ready for various scenarios. Last March, with almost all brick and mortar stores closed down overnight, we had to adapt quickly to the new situation. Thanks to the use of RFID technology in Reserved, our brick and mortar stores started to serve as mini-warehouses handling online orders. As a result, we were able to process orders placed by the online store faster – explains Alexander Yashin, RFID expert, LPP. – The success we achieved thanks to the integral approach to sales in our flagship brand was the key factor which made us more and more convinced to go in that direction with other brands. We knew we had no time to lose and needed to speed up the works on RFID implementation in more brands – he adds.

The first implementation of RFID in Reserved brand proved to be the fastest implementation of this technology worldwide. Thanks to the lessons learned from that experience, the company will implement it the second time even faster. – In Reserved, we introduced RFID in 270 stores within 12 months. Now, we are planning to implement it in 867 stores of other brands in 12 countries in just 7 months. It means that we will roll out the solution over 5 times faster than in Reserved – adds Agata Mielewczyk, IT Project Manager, LPP.

The RFID technology will be used in a total of over 1200 LPP stores. Thus, in 2021 over 200 million pieces of goods, being an offer of four brands of the Polish company, will bear electronic tags. An important element of the ongoing project is also a novelty, which are the RFID soft tags. Owing to this solution, products such as jewellery, perfume and other accessories will also be covered by the technology. – The implementation of soft tags will allow us to increase the availability of our offer for online orders of Reserved, as well as Cropp, Mohito, and House brands. The implementation of the system and the additional introduction of soft tags will ensure 100 percent visibility of stock levels in real time. Such elements as accuracy and efficiency of this solution are essential to us in the development of our omnichannel strategy. – says Alexander Yashin.

– We made the decision to extend the technology finally to Cropp, House and Mohito in October 2020, and started training buyers and suppliers already in November. We are currently preparing the stores, i.e. painting the walls with screening paint, equipping them with detachers and RFID readers. Moreover, we are implementing changes in the warehouse management system, store applications or in the software of RFID coding tunnels in our Distribution Centre. The full rollout of the technology in the stores will begin in September this year, and in parallel training of store staff will be carried out until March 2022 – says Agata Mielewczyk.

The transformation that the company has undergone and the decision to accelerate many technological projects is a response to the new reality of the clothing industry. The potential of RFID technology fully fits with the needs of the dynamic development of LPP’s multi-channel sales model.

______________________________________________________________________________

LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of over 1.3 million sq.m. The online offer of the brands collections is available on 30 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 265 million pieces of clothing to three continents. LPP also plays an important role as it employs over 24 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP’s 4Q20/21 videoconference, 29th April, 12.00 pm CEST

Dear Sir or Madame,

LPP, the leading CEE fashion company, has the pleasure to invite you to participate in its videoconference, on Thursday, 29th April, 12.00 pm CEST.

The CFO, Mr Przemysław Lutkiewicz, will comment on the company’s 4Q20/21 numbers and developments.

Videoconference in English will be available under the following link:

https://platforma.livingmedia.pl/lpp/210422003/

During the online broadcast participants will have the possibility to ask questions using chat.

______________________________________________________________________________

LPP SA is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of over 1.3 million sq.m. The online offer of the brands collections is available on 29 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 265 million pieces of clothing to three continents. LPP also plays an important role as it employs over 24 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP doubles its warehouse space in Romania

Due to the growing importance of the Romanian market in e-commerce sales, LPP has proceeded to expand its Fulfilment Centre warehouse near Bucharest. Completion of the works and commissioning of the new facility is scheduled for the third quarter of this year. The doubling of the area of the already operating warehouse will allow the Polish clothing manufacturer to handle online orders from customers in both Romania and neighbouring countries, including Bulgaria, where the company plans to launch online sales later this year.

LPP has decided to expand its Fulfilment Centre, launched in 2019 near Bucharest. The warehouse, which handles online orders of LPP brands, will gain an additional 21,000 m2 upon completion of construction works in the third quarter of this year. This means that the Gdańsk-based company will double its warehouse space available in Romania. The decision to expand the existing facility was driven by the growing role of the local market in the group’s e-commerce sales.

– The works on the expansion of our warehouse in Romania, which have been in progress for over a month, are well advanced. The installation of the concrete pillars, which has just been completed, allows us to start the next stage of construction, namely the preparation of the steel structure of the roof. These works will take several more months. After their completion, we will have twice as much warehouse space in one of the fastest growing markets in terms of online sales growth for our brands – comments Sylwester Dmytriwski, Logistics Regional Network Director, LPP.

The Fulfilment Centre, located near Bucharest, now enables the efficient handling of orders for customers from this country, including offering facilities such as next business day delivery. The expanded warehouse, with a total area of 42,000 m2, will eventually serve not only online orders from Romania, but also from neighbouring countries. The new facility will also carry out cross-dock operations to supply the LPP brick and mortar stores network in Romania and Bulgaria, which currently comprises a total of over 100 stores in both countries.

– Southeast Europe remains an important region for us, also in terms of online sales. One of the fastest growing e-commerce markets in this part of the continent is Romania, which has become the second country after Poland with the largest share of our group’s online revenues. We hope that the revival in this channel, particularly visible in Romania, will continue and doubling the current warehouse space will further strengthen this trend – adds Sylwester Dmytriwski.

The expansion of the warehouse in Romania is, in addition to the e-commerce warehouse currently under construction in Russia and the distribution centre in Brześć Kujawski, another investment aimed at strengthening and developing LPP’s logistics. Upon completion of all three facilities, the group’s total warehouse space will increase by 50%, i.e. from the current 253,000 m2 to 378,000 m2.

______________________________________________________________________________

LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of over 1.3 million sq.m. The online offer of the brands collections is available on 29 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 265 million pieces of clothing to three continents. LPP also plays an important role as it employs over 24 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

The construction of the LPP distribution centre in Brześć Kujawski gains momentum

Construction works on the site of LPP’s investment in Brześć Kujawski, which began in January this year, are gaining momentum. Almost eight weeks after the announcement of the general contractor selection, the company from Gdańsk has already completed part of the earth-, reinforced concrete works and external installations. In the second week of March, the company also started assembling concrete pillars which will allow the next stage of the works – preparation of the steel structure of the roof – to begin at the end of the month.

One of the key investments of a Polish clothing manufacturer has entered the next stage of implementation. After the initial preparation of the location, fencing of the site and activation of access control and technical facilities, the company started the main part of the construction works. Therefore, after almost two months from the start of activities on the site of the future distribution centre, 70 per cent of the ground has been levelled and reinforced for the purpose of flooring works. The company is also in the process of performing external installations and reinforced concrete works. In the first week of March, the erection of structural columns began. According to the approved schedule, up to 20 of those will be erected daily, and the entire assembly will be completed before Easter.

– The investment process in Brześć Kujawski is going according to plan. Despite the temporary unfavourable weather conditions, which caused freezing of the ground in February and held us back for over three weeks, we resumed work in the first days of March. Parallel to the earthworks, we are currently installing concrete pillars, of which 123 out of the planned 400 have already been installed. Once this stage is completed, weather permitting, we will have an important moment of closing the facility with walls and a roof – comments Łukasz Piwoński, Administrative and Technical Director, LPP.

The assembly of the roof structure and the installation of the walls of the warehouse part of the new LPP distribution centre should already start at the turn of March and April. The milestone in the schedule will be the flooring, the most important element for the future technological facilities, scheduled for the end of May.

– Despite the still changeable weather, our entire investment team is currently focused on keeping up with the current schedule. I am convinced that thanks to the involvement of the general contractor, architects and investor supervision, the announced completion date in the fourth quarter of this year will be maintained – adds Łukasz Piwoński.

______________________________________________________________________________

ABOUT Brześć Kujawski Distribution Centre

The construction of the Distribution Centre in the Brześć Economic Zone is the next step in the development of the LPP’s supply chain. The state-of-the-art facility will enable the diversification of logistics operations and will strengthen the currently available capacities of the supply and distribution network of the Gdańsk-based company. Its area will comprise 75 thousand m2. The centre will support the operation of LPP’s brick and mortar stores in 25 markets, with distribution of up to 8 million pieces of clothing and accessories per week. In the first phase of its operation, the facility will employ about 500 people. The launch of the Distribution Centre in Brześć Kujawski is planned for the first quarter of 2022.

LPP SA is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of over 1.3 million sq.m. The online offer of the brands collections is available on 29 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 265 million pieces of clothing to three continents. LPP also plays an important role as it employs over 24 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP to launch another e-commerce warehouse in Russia

LPP has signed a contract to lease warehouse space in Moscow’s industrial park – “PNK Park Zhukovsky”. Built on behalf of the Gdańsk-based company, the 30,000 m2 Fulfillment Center will be dedicated to handling e-commerce sales in Russia. The new facility in LPP’s distribution network, located 19 km from the Moscow ring road, is yet another step towards strengthening multi-channel sales of the Polish clothing manufacturer.

LPP has signed a long-term lease agreement concerning space in a Moscow industrial park with a Russian development company. The 30,000 m2 facility will serve as a Fulfillment Center in the logistics network of the Gdańsk-based company. The warehouse, built within the“PNK Park Zhukovsky” complex situated 19 km from the Moscow ring road, due to its location, will make it possible for the company to significantly improve the handling of customers’ online orders on one of its key markets.

– LPP’s strategy for omnichannel development in Russia is tantamount to new challenges we will be facing related to network expansion and continuous improvement of logistics infrastructure. We have long seen a strong interest in our online store offer among customers in this region, and the pandemic period has further reinforced this trend. Investment in a modern Fulfillment Center in the “PNK Park Zhukovsky” complex is therefore an important step towards achieving our goals of dynamic sales growth in the e-commerce channel – comments Sebastian Sołtys, Logistics Director, LPP.

The first stage of the investment, which is being carried out by the PNK Group on behalf of LPP already in the current season, involves the construction of a facility with an area of 30,000 m2. As agreed, the second phase will continue in 2022 in line with the growing space needs of the Gdańsk-based company.

The Polish clothing manufacturer has had a 15,000 m2 Distribution Centre in Russia since 2012, which provides supplies for more than 400 LPP’s brick and mortar stores in Russia and Kazakhstan. In 2017, the company expanded its logistics network and launched a 17,000 m2 warehouse near Moscow dedicated to online sales. With the new facility, LPP plans to triple the number of online orders processed in the region.

– The first talks about lease in this location started even before the pandemic. And this, in turn, has significantly changed the balance of power between our sales channels by increasing the role of e-commerce. With this in mind, it was particularly important for us that the facility should cater to the new needs of our logistics infrastructure, have an optimal central location and provide the opportunity to dynamically increase the space in this complex. The new Fulfillment Center warehouse, which will be located in close proximity to the Russian capital, meets these expectations – explains Sebastian Sołtys, Logistics Director, LPP.

LPP’s investment in Russia is not the first one carried out in cooperation with the PNK Group. In 2019, the Polish company leased a 32,500 m2 industrial building in the PNK Sered complex in Slovakia. The Slovak Fulfillment Center handles online orders in the Central European region.

LPP has been developing its global sourcing and distribution network for years, with all of its warehouse space now totalling over 250,000 m2. The long-term investment of lease space in the PNK Zhukovsky facility is another step for the Polish company to implement its omnichannel strategy. As part of the transformation of logistics, technology and sales processes, the company fully integrated its sales channels last year. LPP’s presence in this location further facilitates the implementation of the company’s business strategy in the new retail reality.

______________________________________________________________________________

LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of over 1.3 million sq.m. The online offer of the brands collections is available on 29 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 265 million pieces of clothing to three continents. LPP also plays an important role as it employs over 24 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP once again hailed leader in WIG30 companies’ communication with the market

LPP won first place in the WIG30 investor relations survey for the second time in a row. The winning result consisted of the highest rating awarded by financial institutions and a third place in the individual investor voting. Thus, the company confirmed its leading position as regards communication with the market. The investor relations survey conducted for the seventh time by Parkiet and Izba Domów Maklerskich [the Chamber of Brokerage Houses] is the biggest initiative of this sort in Poland.

The survey of companies’ communication with the market aims to raise the standards of investor relations of companies listed on the Warsaw Stock Exchange and to support the development of the domestic capital market. The annual survey of 30 biggest listed companies with the best liquidity in Poland consists of two parts – a survey among institutional investors and analysts and an online poll for individual investors. In the current, seventh edition, LPP from Gdańsk was hailed leader in the general ranking for the second time in a row. The company has been ranked in the top three for years.

– Our recipe for building good investor relations has for years been based on the fundamental principles of the capital market: transparency and equal access to information for all shareholders, as well as the efficiency and quality of information provided. Last year was full of challenges and required the Management Board to make many strategic decisions – as a listed company, we felt obliged to keep the market informed about them on an ongoing basis. In our opinion, this is the foundation of investor relations based on trust and reciprocity – says Magdalena Kopaczewska, Head of Investor Relations, LPP.

LPP, recognised by representatives of financial institutions as the company which communicates best with the market, achieved 4.92 out of 6 points, with the average of 4.1 points, and took first place in this part of the survey. In the small investors’ assessment, the company was ranked third – with a score of 3.7 points, with the average of 3 points.

More than a thousand people took part in this year’s survey, and the number of ratings exceeded 17 thousand. Representatives of 19 different financial institutions took part in the survey, including funds and brokerage houses (analysis departments), whose votes proved decisive for LPP’s victory in the overall ranking.

______________________________________________________________________________

LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of over 1.3 million sq.m. The online offer of the brands collections is available on 29 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 265 million pieces of clothing to three continents. LPP also plays an important role as it employs over 24 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP is finalising the first stage of the expansion of its Fashion Lab complex. The company doubles the office space of its headquarters in Gdansk

The Pomeranian clothing company has commissioned a new building on Łąkowa street with a total area of 17,500 m2, doubling the area of its headquarters in Gdansk. The opening of the building completes the first stage of the expansion of the Fashion Lab complex, which is to consist of four office buildings and enable the presence of most of the Gdańsk-based teams in the same location in the Dolne Miasto district of Gdańsk. The completion of the entire investment is scheduled for 2027.

– The project to create the Fashion Lab campus on Łąkowa began back in 2015 with the complete modernisation of the company’s existing HQ in Gdańsk. Two years later, while embarking on the construction of the building we are now commissioning, the concept of creating an ecological complex of office buildings that would fit in with the architecture of this district of Gdańsk was created. This approach will allow us to concentrate most of the several thousand employees of LPP headquarters in one location. This solution goes hand in hand with the changes taking place in LPP as regards transition towards an omnichannel organisation, which requires close cooperation and fast flow of knowledge between our teams. At the same time, the idea of the campus we are embodying is meant to appeal to our employees – fashion and contemporary design enthusiasts. We want the space we create to reflect the spirit of LPP, combining art, fashion and business – says Jacek Kujawa, Vice-President, LPP.

Some of Reserved brand’s design teams and omnichannel department have already started working in the new facility. The industrial-style building was designed by JEMS Architekci in consultation with the conservation officer.

– We wanted the Fashion Lab complex to fit in with the historical image of the district by referring to the industrial traditions of the Dolne Miasto district. The new building recreates the frontage, i.e. the sequence of front buildings of Łąkowa street, maintaining the character of the pre-war buildings with the former Tobacco Factory, i.e. the current seat of the LPP HQ and the Rifle Factory – says Łukasz Piwoński, Administrative and Technical Director, LPP.

The building with a total area of 17,500 m2 is divided into an above-ground office space of 8,500 m2 and an underground part with a total area of 9,000 m2 – with a two-level garage. The structure, which is 18 metres high, is made of 15,000 m3 of concrete.

– It is as if we built a 10 km long concrete roadway from Łąkowa street to our Distribution Centre in Pruszcz Gdański. The weight of the steel used may also appeal to the imagination – the 1,200 tonnes built into the structure may be compared to the weight of 800 medium-sized cars – points out Łukasz Piwoński.

The company has been pursuing the objectives of its new sustainability strategy “For People For Our Planet” since 2020. One of its pillars consists in the sustainable development of the HQ buildings and sales network infrastructure. The aim is to maintain the standards of modern and sustainable construction that will meet BREEAM certification requirements. Therefore, already at the design stage, the company focused on pro-environmental solutions, deciding, among others, to install a greywater system, thanks to which rainwater is used to flush toilets in the building. Special reservoirs were also introduced to collect rainwater for watering green areas. In addition, chilled ceiling technology, present in 80% of the usable area of the building, was used as an alternative to standard air conditioning.

– Instead of using a traditional cooling agent, i.e. freon, we opted for a more ecological solution which uses water to this end. This method also eliminates the problem of microorganisms which, over time, appear in the air-conditioning ducts, and the aluminium tilt windows used everywhere, which allow ventilation of the rooms, additionally support ventilation – says LPP’s Administrative and Technical Director.

Green technologies present throughout the building also include energy-efficient lighting using LED lamps with intensity sensors. By adjusting the amount of light to external atmospheric conditions, they determine the optimum illumination of rooms, while at the same time reducing energy consumption. To further reduce energy consumption, the building’s automation is managed by a modern BMS (Building Management System). which controls energy, heating, ventilation and air conditioning in an integrated manner. For the sake of the comfort of the residential areas in the neighbourhood, the company also wanted to limit the noise generated by the ventilation equipment. To this end, all the technical centres are located in the basement of the office building.

The new office in the Fashion Lab complex is environmentally friendly, but also a functional and pleasant place to work. With the employees’ comfort in mind, a green courtyard with natural grass and four-metre-high trees was made, which creates a friendly, intimate atmosphere of a mini-park. The focal point of the entire campus will be a green square surrounded by hill-like elevations, in which terraces with work and relaxation zones will be formed. In addition, for the convenience of motorised employees, the new 9,000 m2 facility has a two-level underground car park for 112 cars, of which 8 spaces are planned for electric vehicles and equipped with fast chargers. The company will provide employees , for starters, with six cars as part of its Car Sharing service, of which more than 30% will be electric, with full booking access and smartphone operation.

The opening of the second facility completes the first stage of a long-term investment to create the LPP Fashion Lab complex in Gdansk, which will ultimately consist of 4 office buildings located on a plot of 14.4 thousand m2. It is expected to be completed by 2027.

______________________________________________________________________________

LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of over 1.3 million sq.m. The online offer of the brands collections is available on 29 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 265 million pieces of clothing to three continents. LPP also plays an important role as it employs over 24 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.