LPP, the Polish company known for its popular brands Reserved and Sinsay, has announced robust growth in the second quarter (Q2). The company reported a 45% increase in revenues on a like-for-like basis compared to the same period last year. In actual terms, the growth reached 19%, amounting to PLN4.3 billion. LPP’s successful expansion into Italy, Greece, and the UK played a significant role in achieving these positive results.

Among its brands, Sinsay experienced rapid growth, with a notable revenue increase of 63%. This surge can be attributed to Sinsay’s expansion into new e-commerce markets in Greece, Spain, and Italy. Its online revenues reached PLN1.2 billion, reflecting a growth rate of 54%. LPP highlighted that its consistent development in European markets has led to consecutive quarters of higher sales from abroad, accounting for 57% of the group’s total revenues in Q2.

LPP has set its sights on further international expansion, with a particular focus on Western Europe as a key market. Reserved plans to debut in Milan in 2023, and the company is actively working on expanding its presence in London, with plans to open stores in three shopping centers. Sinsay, on the other hand, is not only expanding through e-commerce but also through physical stores, with openings in Italy by the end of this year and in Greece in early 2023.

Despite facing challenges related to geopolitical tensions, especially at the eastern border, LPP celebrated its strong performance in Q2. The company achieved revenue growth even after its withdrawal from the Russian market and its limited operations in Ukraine. Taking the impact of the Russian market into account, the revenue growth would have been an impressive 45% rather than the reported 19%.

Although the company’s gross margin experienced a slight dip to 52%, LPP’s net profit for the first half of the year exceeded PLN514 million, compared to PLN480 million in the same period last year. LPP attributes this success to the implementation of its new strategic goals for foreign markets and the positive reception of its collections in other countries. Despite inflationary pressures, customer purchasing trends have shown no signs of slowing down, with the interest in autumn wardrobe changes and back-to-school offerings contributing to ongoing consumer enthusiasm.

LPP remains optimistic about its future prospects as it continues to expand into new markets. With its strong performance and strategic focus on international growth, the company is well-positioned to achieve success in the fashion retail industry.

Useful Links:
1. Reserved
2. Sinsay