Strong dollar takes toll on Polish retailer LPP's profit
today Feb 19, 2016
LPP, Poland's biggest clothing retailer, reported a larger-than-expected 29 percent fall in fourth-quarter net profit on Friday, as a strong dollar raised the costs of imported materials from Asia.
The home-grown rival to H&M and Inditex that is a member of the Warsaw stock market's blue chip WIG20 index, said its net profit fell to 173 million zlotys ($44 million) in the quarter, as the dollar rose by 20 percent year-on-year.
LPP, which operates under the Reserved, House, and Cropp brands, also said that its full year net profit fell to 353 million zlotys, below the 388 million expected by analysts.
LPP's share price fell by 3.5 percent, lagging the WIG20 index which fell by 0.4 percent.
$1 = 3.9498 zlotys
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