Polish fashion retailer LPP net profit jumps on strong sales

Poland's biggest fashion retailer LPP recorded a near 15% year-on-year jump in its full-year net profit to 1.10 billion zlotys ($265.27 million), driven by new store openings, and positive like-for-like (LFL) sales, the company said on Thursday.

The fashion company also said that it would recommend a full-year dividend of 430 zlotys per share to the general meeting of shareholders.

Revenues surged 40%, reaching 15.93 billion zlotys, while earnings before interest and taxes (EBIT) rose to 1.46 billion zlotys, compared with 1.13 billion zlotys a year ago.

The retailer's like-for-like (LFL) sales increased by 17% on the year, with all of the group's brands reporting double-digit jumps.

The full-year gross sales margin amounted to 51.1% from 57.2% in the previous year, dragged down by restricted sales ability in high sales margin markets of Russia and Ukraine.

At the end of 2022/23 the fashion group stores count dropped on the year by 13% to 1,962 units mainly due to closing of its Russian unit.

At the same time, the number of stores with continued business activity increased by 19.8%, driven by intensive openings of the Sinsay brand.