LPP, the owner of popular fashion brands Reserved and Sinsay, has recently reported impressive financial results for the first quarter of the year. The company generated PLN3.6 billion in revenues, marking a nearly 20% increase compared to the previous year. This growth can be attributed to LPP’s expansion efforts, as it opened 92 new stores during the February-April period, representing a 20% increase.

LPP credits its success to its effective utilization of omnichannel sales strategies across almost 40 markets. As a result, the company achieved a net profit three times higher than the previous year, totaling PLN112 million in the first quarter alone. Physical store sales saw a notable 34% increase, while e-commerce sales brought in over PLN900 million, with 70% of those sales coming from mobile devices.

Among LPP’s brand portfolio, Sinsay emerged as the top performer, generating over PLN1.5 billion in sales during the first quarter. Mohito also experienced significant growth, with a growth rate of almost 25%. Additionally, Reserved’s women’s and men’s collections received positive reception, and Mojito and Cropp witnessed high double-digit sales increases.

LPP’s focus on international expansion has yielded positive results, with international sales accounting for 58% of total sales in the first quarter, a 6% increase compared to the previous year. The company plans to continue expanding in Southern and Western European markets, aiming to increase the number of physical stores by 400 in the current financial year. Recent store openings in Romania, Macedonia, Serbia, Bulgaria, and Bosnia and Herzegovina have contributed to LPP’s international success. Moreover, the company has plans to further expand into the UK market this year.

Despite its impressive performance, LPP remains committed to maintaining cost discipline. The company recognizes that its customers are resistant to price increases, particularly for value brands like Sinsay, amidst inflation. To ensure its products remain affordable and attractive to its customer base, LPP has initiated a cost-cutting campaign.

Overall, LPP’s strong results in the first quarter showcase its ability to navigate the dynamic fashion industry landscape. Through its omnichannel approach, international expansion, and customer-focused strategies, the company continues to solidify its position as a competitive player in the global fashion market.

Useful links:
LPP Official Website
Reserved Official Website