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Published by Global Banking & Finance Review®
Posted on March 26, 2026
2 min read
Fourth-Quarter Performance and Future Outlook
Profit and Revenue Highlights
GDANSK, Poland, March 26 (Reuters) – Poland’s biggest fashion retailer LPP on Thursday reported fourth-quarter net profit that topped analysts’ expectations, driven by higher revenue and lower costs.
The company, whose brands include Reserved and budget chain Sinsay, posted a quarterly net profit rise of 58.7% year-on-year to 714 million zlotys ($193 million) compared with a median forecast of 582 million zlotys in a Reuters poll.
Cost Management and Operational Efficiency
The profit jump was supported by a 10.1% drop in operating costs per square meter, aided by lower rental expenses for new Sinsay stores, cost control, and logistics automation, the company said.
Sales Growth and Expansion Strategy
LPP recorded double-digit sales growth in the fourth quarter both in Poland and abroad, with total revenue rising nearly 14% to 6.46 billion zlotys.
As Poland’s biggest fashion retailer, LPP is pursuing a rapid European and Central Asian expansion.
Focus on Sinsay Brand
This strategy is focused on its budget brand Sinsay, which aims to compete with fast-fashion retailers and is targeted to account for the majority of sales growth.
Profitability Outlook and Risks
Upgraded Margin Forecasts
The retailer also raised its profitability outlook for 2026, lifting its estimated gross profit margin to between 55.0% and 55.5% while upgrading its expectations for both core and net profit margins to 23-24% and 9-10% respectively.
Potential Risks and Geopolitical Concerns
However, LPP warned that its performance this year could be affected by geopolitical tensions in the Middle East, noting the escalation is driving up fuel prices and increasing transport and distribution costs.
($1 = 3.6968 zlotys)
(Reporting by Rafal Nowak; Editing by Matt Scuffham)