In 2016, revenues of LPP, the owner of the clothing brands − Reserved, Cropp, House, Mohito and Sinsay exceeded PLN 6 billion, an increase of 17 percent compared to the previous year. Gross margin amounted to almost 49 percent. LPP’s revenues from online sales increased in this period by as much as 118 percent. Sales in the so-called comparable stores and sales per square meter also increased significantly − by 8 percent. This year the company will debut in four new markets and will launch online shops in six countries.
In the fourth quarter of 2016, the company generated sales revenues of nearly PLN 2 billion, an increase of 18 percent year on year. In the reporting period, sales in the so-called comparable stores also increased for the fifth time in a row − this time positive results were recorded by each of the five brands in all markets in which the company operates. In the period from October to December of last year, LPP launched stores with a total area of 33 thousand sqm., thereby increasing the total area of its commercial network to 921 thousand sqm. In the fourth quarter, the company recorded a profit of PLN 158 million. Gross margin was almost 51 percent, and online sales of LPP in the last three months of last year grew by 144 percent compared to the same period in the previous year.
Last year, the main challenge for LPP was the condition of the Reserved brand and profit margins decreasing throughout the apparel industry as well as wholesale of inventories and liquidation of the Tallinder brand − says Przemysław Lutkiewicz, Vice President and CFO of LPP.We enter the new year without this type of issues. We catch the wind in the sails and have the courage to take on new challenges. Entry into four new markets and significant increase in the scope of online sales are ahead of us − he adds.
In 2017, the flagship brand of LPP will debut in four countries: the United Kingdom, where in September a flagship Reserved store in London’s Oxford Street and an on-line shop will be opened, as well as in Serbia, Belarus and Kazakhstan. The company also accelerates its development in Russia and the Ukraine, where it plans to open new stores and launch online sales of all its brands. Total investment of the company in 2017 will amount to approx. PLN 440 million.
At the same time the plan to expand into the German market will be consistently implemented. Although the presence on the market of our Western neighbours still involves considerable financial outlays, LPP treats it as long-term investment and sees great potential in this market. In the fourth quarter of 2016, Germany, where the company manages 16 stores, was the fourth country in terms of revenues.
LPP SA is one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 20 years, the company has consistently carried out its operations in Poland and abroad, being successful on the demanding clothing market. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito and Sinsay. The company has a network of nearly 1 700 stores and online shops of all its brands, and creates jobs for over 22 thousand people in its offices and sales structures in Poland, Europe, Asia and Africa. LPP SA is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.
Contact for the media:
LPP Press Spokesperson