Press room

LPP S.A. Press room Financial results of LPP for the third quarter of 2015

Financial results of LPP for the third quarter of 2015

12.11.2015

The expansion of the brand flagship collection, commitment to the quality of products and rapid development of an e-commerce channel are the activities that LPP has introduced to strengthen the competitiveness of the offer. Strategic business development goals remain unchanged. In 2016, the owner of five popular clothing brands – RESERVED, Cropp, House, MOHITO and SiNSAY will allocate a significant part of the acquired resources to investment and it will increase the retail space by another 15 percent. The company announced its results for the third quarter of 2015.   The revenues from sales realized in the third quarter of 2015 amounted to over PLN 1.2 billion and increased by 2 percent year on year. In the analysed period, the company generated a net profit of nearly PLN 80 million and opened new stores with a total surface area of over 20 thousand sqm., thereby increasing its retail space to almost 800 thousand sqm. The revenue from sales in the Group’s comparable stores (LFL) decreased in the third quarter by 1.5 percent, which was mainly due to external factors. Due to the record high temperatures at the end of summer in our region, in August and September the customers were not buying the autumn collection yet. Positive results of LFL in local currencies were reported by the company in Russia and Ukraine, as well as in the Baltic countries.   Looking at our results, and also at market trends, we decided to focus on three, in our opinion, major tasks. We increase the number of models in the collections of our flagship RESERVED brand by as many as 50 per cent, thanks to which we can adjust our offer to the specific character of stores’ location and size. At the same time, in all five brands we put even greater emphasis on the quality of products and we select the best possible fabrics. We also develop online sales – within a few years, we would like to have online shops in most of the countries in which we have brick and mortar stores. All of those activities are undertaken in order to strengthen our position against global competitors and clothing e-platforms that are growing in strength – says Przemysław Lutkiewicz, Vice President of LPP.   The long-term business strategy of LPP assumes the dynamic development of sales network in both the countries in which the company already has its stores and in new markets in Western Europe and the Middle East. Two times higher sales per metre than the average in Poland, achieved in the first months of the stores’ operation, encourages us to develop in the latter region.   We are confident that apart from attractive offer, it is primarily the reach of our sales network that is the key to success. Therefore, we do not slow down and in 2016 we would like to increase our retail space by 15 percent, that is by as much as 125 thousand sqm. To achieve this objective, the total value of investment in our brands stores will amount to nearly PLN 300 million –adds Przemysław Lutkiewicz.     LPP SA, a company listed on the Warsaw Stock Exchange since 2001, is one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 20 years, the company has been consistently operating in Poland and abroad, being successful on the demanding clothing market. LPP SA manages 5 popular fashion brands (RESERVED, Cropp, House, MOHITO and SiNSAY), a network of nearly 1,600 shops, creating workplaces for nearly 20 thousand people at its offices and sales structures in Poland, Europe, Asia and Africa. The company invests and acquires new markets. In 2015, the company opened for example stores in Egypt, Kuwait, Qatar and Saudi Arabia. In 2014, the company advanced to the stock exchange index WIG20, which generates a significant part of the turnover on the Warsaw Stock Exchange, and belongs to the prestigious MSCI Poland index.   Contact for the media: Marta Chlewicka acting Press Spokesman e-mail: media@lppsa.com