Poland's biggest fashion retailer LPP on Thursday reported a 5.4% jump in second-quarter net profit driven by the continued strength of its budget-friendly Sinsay chain.
LPP, owner of fashion chain Reserved, Sinsay and other brands located mostly in central Europe, said net profit for the second quarter totaled 467 million zlotys ($127.75 million), below analysts' forecast of 497 million zlotys.
LPP is pursuing a rapid European expansion focused on its budget brand Sinsay, which aims to compete with fast fashion retailers like Inditex's Bershka.
It plans to increase retail space by 25-30% in 2025 as it targets Sinsay to account for 75% of group sales.
The company also plans to expand its store network to around 7,500 outlets by the end of 2027.
According to Reuters, the company said the positive momentum had continued into the third quarter. In the period from August 1 to September 21, it registered positive like-for-like (LFL) sales, with online sales up 24% year-on-year and group sales up 22% in constant currencies.
LPP confirmed its recently cut 2025/26 revenue forecast at between 23-24 billion zlotys from a projected 25-26 billion, blaming exceptionally cold weather in May for hitting demand for its spring-summer collections.
Second-quarter net profit edged up 5.4% to 467 million zlotys from a year earlier, with sales up 11% to 5.55 billion zlotys.
The group opened 432 new stores in the first half of the year.
