LPP Shares Hit Five-Month High on Strong Second-Quarter Earnings

The owner of Reserved and Sinsay reported a net profit of 768 million Polish zloty ($202.3 million) for the quarter, beating consensus forecasts by approximately 8%. This performance pushed the group’s half-year profit to 1.24 billion zloty, a 56% increase compared to the previous year. Revenue growth of 18% was fueled by a 16% jump in online sales and a aggressive retail expansion strategy, with 351 new stores added since January.

Profitability also benefited from a strengthening zloty and tighter cost management, pushing gross margins up 3.7 percentage points to 57.7%. Sinsay remains the primary engine of this growth, accounting for 57% of total sales. Looking ahead, management raised its annual gross margin guidance to a range of 56.5% to 57%. The group projects full-year sales between 26 billion and 27 billion zloty, with ambitions to reach up to 31 billion zloty by 2027.