LPP S.A.

LPP S.A. Announces Dividend Advance Payment for Fiscal Year 2025/2026

Gdańsk-based fashion retailer LPP S.A., owner of brands such as Reserved, Sinsay, Cropp, House, and Mohito, has announced its decision to pay an advance on dividends for the fiscal year spanning February 1, 2025, to January 31, 2026. The decision, approved by the Supervisory Board, aligns with the company's Dividend Policy for 2024-2026, adopted during the Ordinary General Meeting on June 30, 2023.

The advance payment, amounting to 742,356,000 PLN, will be distributed at 400 PLN per share across all 1,855,890 shares. The record date for determining eligible shareholders is set for April 23, 2026, with the payment scheduled for April 30, 2026. The decision was based on the company's interim financial report as of July 31, 2025, audited by an independent auditor.

Additionally, the management preliminarily plans to propose a total dividend of at least 800 PLN per share during the Ordinary General Meeting later in 2026, with the final payment date expected on October 30, 2026. Shareholders who sell their shares after the record date will retain the advance payment, while the buyer will receive the remaining dividend amount.

Further details will be published in the Investor Relations section of LPP's website and in the Monitor Sądowy i Gospodarczy.

Relevance: This announcement highlights LPP's financial stability and commitment to shareholder value, which is crucial for maintaining investor confidence amidst challenges such as supply chain disruptions and competitive pressures in the fashion retail sector.

LPP S.A. Demonstrates Strong Financial Performance and Compliance with Reporting Standards

LPP S.A., Poland's largest omnichannel fashion retailer and owner of brands such as Reserved, Sinsay, Cropp, House, and Mohito, has received a positive audit opinion on its consolidated financial statements for the fiscal year ending January 31, 2024. The audit, conducted by Grant Thornton Polska, confirms that the financial statements present a clear and accurate picture of the company's financial position, performance, and cash flows in compliance with International Financial Reporting Standards (IFRS).

The audit highlights the company's robust inventory management practices, including valuation methods and adjustments for potential impairments. As of January 31, 2024, LPP's inventory was valued at PLN 3,040 million, representing 22% of its total assets. The company employs detailed processes to ensure accurate inventory valuation, including aging analysis, sales forecasts, and return estimates, particularly for its growing e-commerce segment.

Additionally, the audit confirms that LPP has adhered to the European Single Electronic Format (ESEF) requirements for financial reporting, ensuring transparency and compliance with regulatory standards. The company's governance and internal controls were also found to be effective, further reinforcing its commitment to operational excellence and financial integrity.

Grant Thornton Polska emphasized the importance of LPP's inventory management and financial reporting processes, given the company's rapid expansion and exposure to external risks such as supply chain disruptions, currency fluctuations, and seasonal demand variations.

Relevance: This article is relevant to LPP S.A.'s business profile as it underscores the company's financial stability, operational efficiency, and compliance with international reporting standards, which are critical for maintaining investor confidence and supporting its ambitious growth strategy.

LPP S.A. Expands Sinsay and Strengthens E-Commerce Amid Market Challenges

Poland's largest omnichannel fashion retailer, LPP S.A., continues to drive growth through the rapid expansion of its budget-friendly Sinsay brand and a robust e-commerce strategy. The company is capitalizing on underpenetrated markets in Central and Southeastern Europe, leveraging its omnichannel approach and customer loyalty programs to maintain competitive margins and enhance customer retention. Additionally, LPP's scale in procurement and logistics enables cost efficiencies, supporting its aggressive expansion plans.

However, the company faces significant challenges, including competition from ultra-low-cost Asian platforms like Shein and Temu, as well as rising operational costs due to increased wages and rental expenses in the CEE region. Supply chain disruptions, currency fluctuations, and weather-related demand variability also pose risks to its operations. Despite these hurdles, LPP's focus on value-driven brands like Sinsay positions it well to attract cost-conscious consumers during economic downturns.

Relevance: This article highlights LPP S.A.'s strategic focus on expanding Sinsay and e-commerce, which are key growth drivers for the company, while addressing external challenges that could impact its operational and financial performance.

LPP Implements Incentive Program for Management, Employees, and Collaborators

LPP S.A., Poland's largest omnichannel fashion retailer, has announced the adoption of an incentive program aimed at rewarding members of the management board, employees, and collaborators. The decision was approved during the company’s general meeting, as stated in an official communication. The program is designed to align the interests of key stakeholders with the company’s long-term growth objectives, fostering motivation and commitment across the organization.

The initiative underscores LPP's focus on retaining and incentivizing talent, which is crucial for sustaining its rapid expansion, particularly in the development of its Sinsay brand and e-commerce operations. By implementing such programs, LPP aims to strengthen its competitive position in the dynamic fashion retail market.

Relevance: This development is significant for LPP as it supports the company's strategic goals of maintaining operational efficiency and driving growth in a highly competitive and volatile market environment.

LPP S.A. Announces Key Resolutions from Extraordinary General Meeting

On January 23, 2026, LPP S.A. held an Extraordinary General Meeting of Shareholders, during which several significant resolutions were adopted to shape the company's future strategy and operations. The meeting saw the participation of shareholders representing 70.97% of the company's share capital, ensuring a quorum for decision-making.

Key Resolutions:

• Approval of a New Incentive Program: A new incentive program was introduced for members of the management board, employees, and collaborators of LPP and its subsidiaries. The program aims to align participants' interests with the company's long-term goals by granting conditional rights to acquire up to 16,000 shares, representing 0.86% of the company's share capital. The program will be funded through a newly established reserve capital of PLN 270 million.
• Changes to the Remuneration Policy: Updates were made to the remuneration policy for supervisory and management bodies, including the integration of the new incentive program. The policy emphasizes performance-based rewards tied to financial and non-financial KPIs, such as EBIT, cash flow, and ESG criteria.
• Establishment of Reserve Capital: A reserve capital was created to finance the acquisition of shares under the incentive program, ensuring the program's smooth implementation.
• Adjustment of Supervisory Board Compensation: Monthly remuneration for Supervisory Board members was revised, with the Chairman receiving PLN 14,500, the Audit Committee Chairman PLN 12,000, and other members PLN 8,500.

The resolutions reflect LPP's commitment to fostering employee engagement, enhancing corporate governance, and driving long-term value creation for shareholders.

Relevance to LPP S.A.: These decisions align with LPP's omnichannel strategy and its focus on sustainable growth, employee retention, and operational efficiency, which are critical to maintaining its competitive edge in the fashion retail market.

Key Shareholders of LPP S.A. Announced Following Extraordinary General Meeting

On January 23, 2026, LPP S.A. disclosed the list of shareholders holding over 5% of votes during the Extraordinary General Meeting (EGM). The largest shareholder, Fundacja Semper Simul, controlled 1,978,889 votes, representing 72.8% of votes at the EGM and 60.8% of total voting rights. Nationale-Nederlanden OFE and Allianz Polska OFE each held 150,588 and 150,488 votes respectively, accounting for 5.5% of votes at the EGM and 4.6% of total voting rights.

This announcement highlights the significant influence of key institutional investors and the dominant position of Fundacja Semper Simul, which is critical for understanding the governance and strategic decision-making structure of LPP S.A.

LPP S.A. Announces Financial Reporting Schedule for 2026

LPP S.A., Poland's leading omnichannel fashion retailer, has disclosed its financial reporting schedule for the fiscal year 2026. The company will release its annual report for 2025 on March 26, 2026, followed by the semi-annual consolidated report on September 17, 2026. Additionally, extended consolidated quarterly reports will be published on June 11, 2026 (Q1) and December 3, 2026 (Q3). LPP will not issue separate quarterly or semi-annual individual reports, nor consolidated reports for Q4 2025 and Q2 2026, in accordance with regulatory provisions. The company clarified that its fiscal year runs from February 1 to January 31, with quarterly periods defined accordingly.

This announcement aligns with LPP's commitment to transparency and regulatory compliance, ensuring stakeholders are informed about the company's financial performance. The reporting schedule is crucial for monitoring LPP's growth, particularly in the context of its rapid expansion and challenges in supply chain management and competitive pressures.

Retail Parks Face Challenges with Limited Tenant Pool, JLL Reports

According to a recent report by JLL, the retail park sector in Poland is experiencing rapid growth but faces challenges due to a limited pool of active tenants. Between 2022 and the first half of 2025, only 82 retail chains opened at least three new stores, with just 37 brands exceeding ten new locations. This limited tenant diversity, particularly in smaller cities, poses risks for developers seeking to expand in this format.

Retail parks have become a significant driver of the retail market, with their number growing from 147 in 2020 to 290 by 2025. However, the tenant mix remains concentrated, with value retail, clothing, and grocery supermarkets occupying 70% of the space. While over 20 clothing brands are active in retail parks, this is a fraction compared to the 1,300 brands present in traditional shopping malls. Developers may face challenges in securing tenants for new projects, especially in smaller cities where only 60 unique brands have been introduced since 2022.

In larger cities, retail parks offer greater diversity, with over 200 brands, including local grocery stores, service providers, and food concepts. However, clothing retailers still prefer traditional shopping malls when possible, further limiting the appeal of retail parks for this segment.

JLL experts warn that the constrained tenant pool could hinder the economic viability of new retail park projects, particularly in locations where multiple outlets of the same brand may not be sustainable.

Relevance to LPP S.A.: The report highlights challenges in tenant diversity within retail parks, which is significant for LPP S.A. as it continues its rapid expansion of brands like Sinsay. Limited tenant pools and competition for prime locations could impact the company's growth strategy in smaller cities and retail park formats.

LPP S.A. Announces Notification of Transaction on Company Shares

On December 16, 2025, LPP S.A., headquartered in Gdańsk, received a notification regarding a transaction involving the company's shares. The notification was submitted by Semper Simul Foundation, an entity closely associated with key management personnel, including Marek Piechocki (CEO), Marcin Piechocki (Vice President), Sławomir Łoboda (Vice President), Piotr Piechocki (Supervisory Board Member), and Jagoda Piechocka (Supervisory Board Member).

The transaction involved the expiration of pledges on two types of financial instruments: 221,914 bearer shares and 8,850 registered privileged shares. Both transactions were conducted outside the trading system and were recorded at a price of 0.00 PLN. The notification was classified as an initial report under Article 19(1) of the MAR regulation.

This development highlights the ongoing financial and corporate governance activities within LPP S.A., reflecting the company's commitment to transparency and regulatory compliance.

Relevance: The transaction underscores the importance of corporate governance and financial oversight in LPP S.A., a key player in the fashion retail sector, as it continues its rapid expansion and navigates external market challenges.

LPP to Vote on New Incentive Program for Management, Employees, and Collaborators

Shareholders of LPP S.A., Poland's largest omnichannel fashion retailer, will vote on a resolution to implement a new incentive program for board members, employees, and collaborators. The proposal is set to be discussed during the Extraordinary General Meeting (EGM) scheduled for January 23, 2026. The program aims to align the interests of key stakeholders with the company's long-term growth objectives, fostering greater engagement and performance across the organization.

The initiative reflects LPP's commitment to strengthening its workforce and maintaining competitive advantages in a challenging retail environment. By incentivizing key personnel, the company seeks to sustain its rapid expansion, particularly in the Sinsay brand and e-commerce segments, while navigating external challenges such as supply chain disruptions and rising operational costs.

Relevance: This development is crucial for LPP's strategic goals, as it supports talent retention and motivation, which are essential for managing the company's rapid growth and competitive pressures in the fashion retail sector.