In the fourth quarter of 2014 the Capital Group LPP, the owner of 5 recognized brands clothing (RESERVED, Cropp, House, MOHITO and SiNSAY), noted an increase in total sales revenues by 11 percent in relation to the same period of 2013. The company carries out an adopted development strategy, seeking new markets in Western Europe and strengthening its position in Central and Eastern Europe countries. After successful entry to Germany and the Balkans, by the end of 2015 LPP is planning on a new market – the Middle East – to create at least 8 RESERVED shops.
Revenues for the fourth quarter of 2014 are approximately 11 percent higher as compared with 2013 revenues earned in the corresponding period (PLN 1,267m). In the fourth quarter 2014 the retail space also increased (by 41 thousand meters). At the end of December 2014, the company had 1516 shops with a total area of 723 thousand square meters.
In the 4th quarter of 2014 the sales achievement by RESERVED shops was PLN 676m and Cropp shops was PLN 220m. Sales achievement by House was PLN 200m, MOHITO shops PLN 146m and SiNSAY salons reached PLN 78m. The company obtained a profit from operating activities amounting to PLN 248m and net profit was at the level of PLN 246m (compared with a net profit of PLN 182m in the 4th quarter of 2013).
“In the fourth quarter of 2014, in accordance with earlier assumptions, we continued developing the shop sales network of all brands. We are constantly developing and we are continually investing. We focus on a more global sales network, as evidenced by the recent debuts in Germany and Croatia, as well as opening the first salons outside of Europe in Egypt” reported Przemysław Lutkiewicz, Vice President of the LPP Board. “We are not resigning from the development of our business in Russia and Ukraine. We have verified in our development plans there. We have successfully negotiated new lease conditions, the costs of which are approximately 50 percent of our outlays. The effects of these actions will already be visible in the financial results for the next quarter” explains Przemysław Lutkiewicz.
Following the successful debut in Germany and Croatia, in February 2015, LPP opened the first RESERVED salon in the Middle East, in Egypt. In the coming months salons of LPP’s flagship brand will start operation in Saudi Arabia, Qatar and Kuwait. Right now the company is finalising the agreement, which will result in the Middle East presence of its brands addressed only to women, i.e. MOHITO and SiNSAY.
LPP, listed on the Warsaw Stock Exchange since 2001, is one of the fastest growing clothing companies. For years it has been consistently carrying out its activities in Poland and abroad, achieving success on the demanding clothing market. The company manages 5 well-known fashion brands, more than 1,500 salons and creates jobs for nearly 18 thousand people in offices and sales structures in Poland, Europe and the Middle East, as well as in their branches in Shanghai and Dhaka. The company continually invests in and gains new markets. In 2014, the company advanced to the WIG20 stock exchange index, which generates a significant part of the turnover on the Warsaw Stock Exchange. It is also listed on the MSCI Poland index.