The group’s revenue rose 11 per cent year on year (YoY) in constant currencies to PLN 5.5 billion (~$1.485 billion). EBITDA increased 36 per cent to PLN 1.3 billion (~$351 million), while EBIT climbed 47 per cent and net profit grew 42 per cent compared with the same period last year.
Poland’s LPP has reported strong Q1 2026 results, with revenue rising 11 per cent YoY to PLN 5.5 billion (~$1.485 billion) and net profit increasing 42 per cent.
EBITDA grew 36 per cent to PLN 1.3 billion (~$351 million), supported by a record 58.5 per cent gross margin and cost discipline.
The retailer opened 121 stores, led by Sinsay, while investing in retail expansion and logistics infrastructure.
“The fifth consecutive quarter of improved profitability shows that the effects of measures taken in the areas of operational agility, cost control and inventory optimisation are sustainable,” said Marcin Bojko, LPP’s vice president for Finance.
The company’s colder temperatures in February and April weighed on demand for seasonal collections, although strong March sales helped offset the impact. The company nevertheless maintained high operational efficiency, aided by favourable purchasing conditions, including a stronger zloty against the US dollar and lower freight costs, LPP said in a press release.
The gross margin reached a record 58.5 per cent in the quarter, the highest first-quarter level in the company’s history. The performance was also supported by effective pricing strategies across its brands.
LPP continued expanding its retail footprint during the quarter, opening 121 new stores, including 102 under its fast-growing Sinsay brand. The group’s total retail space surpassed 3 million square metres, with Sinsay remaining the primary growth driver.
Capex focuses on retail and logistics expansion
The capital expenditure (capex) in the quarter totalled PLN 562 million. Of this, PLN 252 million was invested in store network expansion and PLN 276 million in logistics infrastructure, including expansion of the Brzesc Kujawski distribution centre, warehouse robotisation and construction of a new fulfilment centre in Tczew aimed at strengthening international e-commerce operations.
Online sales contribute over a quarter of revenue
Online sales accounted for 26.6 per cent of total revenue. E-commerce performance in South-Eastern Europe was affected by temporary logistical disruptions linked to a warehouse fire in Romania in June 2025. LPP expects logistics capacity in the region to improve with the launch of a new distribution centre in July 2026.
The company reported a strong recovery in trading after the quarter ended, with omnichannel sales growth reaching 20 per cent between May 1 and June 9 as warmer weather boosted demand.
Reflecting a more selective expansion strategy and current market conditions, LPP revised its 2026 revenue forecast to approximately PLN 26-27 billion from an earlier estimate of PLN 28-29 billion. However, it raised profitability expectations, forecasting a gross margin of around 56 per cent, an EBITDA margin of 23.5-24.5 per cent and a net profit margin of 9.5-10.5 per cent.
Sinsay expansion to remain key growth driver
Looking ahead, LPP plans to continue expanding Sinsay while focusing on profitability and selective site selection. The company expects the brand to open around 750 stores in 2028, with annual openings stabilising at 300-350 stores from 2029 onwards. It also anticipates e-commerce sales growth of 15-20 per cent annually, supported by further market expansion and omnichannel development.
Fibre2Fashion News Desk (SG)
