Polish fashion retailer LPP posts stable Q3 sales growth

In the third quarter, Polish fashion firm LPP Group achieved revenues of 4.4 billion Polish zloty, maintaining a stable revenue level, down 0.4 percent. The company’s year-to-date sales rose 7 percent.

The group reported a 24.1 percent increase in their floorspace and growth across brand and online channels. The Sinsay brand recorded revenues of 2 billion Polish zloty, a 14.7 percent increase.

The company said in a release that openings of new Sinsay traditional stores, attractive prices offered by the brand and the economic environment favourable for the value-for-money segment, were the factors that contributed to its revenue growth.

However, the company added that the third quarter revenue was visibly affected by the negative and positive impact of weather conditions. The effect of warm weather in September had a negative impact on consumer demand, while cooling of the weather in October resulted in a significant increase in consumer demand for clothing.

In geographical terms, a 6.1 percent sales growth was seen in Poland, while sales in other countries were down by 4.7 percent. The group's revenues were underpinned by sales in traditional stores and online. Both sales channels showed stable revenues, driven by lower promotions and reduced performance marketing outlays compared with the previous year.

The group generated gross profit on sales of 55.8 percent, i.e. 6.9 pp.

The group opened three Reserved stores in the UK including the second store on Oxford Street, in the Brent Cross shopping centre and in the Westfield Stratford City shopping centre. The debut Reserved store was opened in Milan on Corso Vittorio Emanuele II highstreet. The company also opened three Sinsay stores at Ioannina, Thessaloniki, Larissa in Greece.