LPP S.A.

LPP S.A. Registers 2,818 Series N Shares in Securities Depository

LPP S.A. has announced the registration of 2,818 Series N shares, each with a nominal value of 2 PLN, in the securities depository managed by the National Depository for Securities (KDPW). The shares have been assigned the ISIN code PLLPP0000086, with the registration set to take effect on April 23, 2026. This development follows the issuance of statement no. 437/2026 by KDPW on April 21, 2026, confirming the agreement with LPP S.A. for the registration of these shares.

Relevance to LPP S.A.: This registration reflects LPP S.A.'s ongoing efforts to strengthen its financial structure and enhance its market presence, aligning with its growth strategy in the competitive fashion retail sector.

LPP S.A. Faces PLN 15 Million Fine from Polish Financial Supervision Authority

On April 21, 2026, LPP S.A. announced that it had received a decision from the Polish Financial Supervision Authority (KNF) imposing a financial penalty of PLN 15 million. The penalty stems from alleged improper execution of disclosure obligations in the company’s consolidated annual reports for the fiscal years 2021/2022 and 2022/2023. Specifically, the KNF cited inaccuracies in the recognition of impairment write-offs related to fixed assets and inventory in Ukraine and Russia, which were prematurely included in the 2021/2022 report instead of the subsequent fiscal year.

The KNF determined that as of January 31, 2022, the situation on the Russia-Ukraine border represented a risk of asset impairment rather than an actual loss, necessitating the adjustment of the financial statements. LPP S.A. has since corrected the reports, as confirmed in its current report No. 22/2023, published on August 28, 2023. The company is currently reviewing the decision and considering filing an appeal.

Relevance to LPP S.A. Business Profile

This development is significant as it highlights the financial and operational risks associated with LPP S.A.'s exposure to geopolitical tensions in key markets like Russia and Ukraine. It also underscores the importance of accurate financial reporting, which is critical for maintaining investor confidence and regulatory compliance.

LPP S.A. Executives Acquire Shares Under 2025 Incentive Program

On April 17, 2026, LPP S.A., Poland's largest omnichannel fashion retailer, announced that key members of its management board, including CEO Marek Piechocki and Vice Presidents Marcin Bójko, Sławomir Łoboda, Marcin Piechocki, and Mikołaj Wezdecki, acquired company shares as part of the 2025 incentive program. The transactions were executed through a private subscription following a capital increase within the authorized capital framework.

Details of the transactions reveal that each Vice President acquired 499 shares at a price of 2 PLN per share, while CEO Marek Piechocki acquired 822 shares at the same price. The transactions were conducted outside the regulated market on April 15, 2026.

This development underscores LPP S.A.'s commitment to aligning executive incentives with shareholder interests, fostering long-term growth and stability in a competitive retail environment.

Relevance to LPP S.A.: The share acquisition by top executives reflects their confidence in the company’s growth strategy, particularly in expanding its omnichannel presence and leveraging its strong brand portfolio, including Reserved, Sinsay, Cropp, House, and Mohito.

LPP S.A. Achieves Record Growth and Expands Internationally in 2025, Strengthening Omnichannel and Sustainability Strategy

LPP S.A., Poland’s largest omnichannel fashion retailer and owner of brands such as Reserved, Sinsay, Cropp, House, and Mohito, reported a landmark year in 2025, marked by robust financial performance, accelerated international expansion, and significant investments in technology and sustainability.

Key Financial Highlights:

• Sales revenue reached PLN 23.1 billion, up 14.4% year-on-year, with constant currency growth exceeding 16%.
• EBITDA increased by 31% to PLN 5.4 billion, EBIT rose by 37% to PLN 3.3 billion, and net profit (excluding one-off events) grew by 36% to PLN 2.4 billion.
• Online sales surged by 17.8% to PLN 6.4 billion, now representing 28% of total sales.
• Gross margin improved to 55.6% (up 2.5 pp), driven by favorable USD/PLN exchange rates and reduced promotional activity.
• Operating costs grew by 14%, but their share in revenue decreased to 41% (from 43%), reflecting strong cost discipline and logistics automation.
• Net debt/EBITDA ratio remained safe at 1.1, despite a 50.8% increase in net debt to PLN 6.1 billion, due to aggressive investment and expansion.

Strategic and Operational Achievements:

• LPP expanded its retail network by 901 stores, reaching 3,748 locations in 35 countries, with Sinsay driving the majority of growth (876 new stores, 42.5% increase in floor space).
• The company entered six new markets, including Kosovo, Albania, Uzbekistan, Azerbaijan, Moldova, and Georgia, strengthening its presence in Central Asia and the Balkans.
• Sinsay’s share of group revenue rose to 54%, confirming its role as the main growth engine.
• Investments reached PLN 3.2 billion (+74.4% y/y), focused on store openings, logistics, and IT. A new e-commerce warehouse was launched in Romania, and automation/robotics in logistics were scaled up sixfold.
• LPP signed a landmark PLN 13.5 billion syndicated financing agreement with a consortium of Polish and international banks, securing long-term financial stability and supporting further expansion.
• Despite a fire at a Romanian warehouse and a non-cash write-off of PLN 823 million related to the 2022 Russian business divestment, LPP maintained liquidity and investment pace.
• The company paid a dividend of PLN 660 per share for 2024 and declared PLN 900 per share for 2025, reflecting stable operational results and shareholder value creation.

Innovation and Sustainability:

• LPP advanced its omnichannel strategy, with mobile apps now accounting for 70% of online transactions. AI was deployed in product content creation, customer service, collection design, and logistics.
• Key R&D projects included a proprietary e-commerce recommendation engine, an AI-driven store location analytics platform, international pricing tools, and a virtual try-on feature in the Sinsay app.
• The company continued its textile-to-textile recycling R&D with Use Waste, achieving laboratory success in polyester and blended fiber recycling.
• LPP’s sustainability strategy was further integrated, with progress in decarbonization (SBTi-verified targets), circularity (clothing collection in all Polish stores and selected foreign markets), and supply chain transparency (amfori BSCI, Accord, Cascale memberships).

Risk Management and Outlook:

• LPP actively managed risks related to supply chain disruptions (Red Sea/Suez), currency volatility, labor and rental cost inflation, and rapid expansion challenges.
• For 2026, the company plans to open 1,000 new stores (mainly Sinsay), increase sales to PLN 28–29 billion, and maintain high profitability (gross margin 55–55.5%, EBITDA margin 23–24%).
• Investment plans for 2026 total PLN 2.6 billion, with continued focus on logistics automation and omnichannel development.

Relevance to LPP S.A. Profile:
This summary highlights LPP S.A.’s strong alignment with its business model—rapid Sinsay and e-commerce growth, omnichannel integration, and resilience to external risks—while underlining its leadership in sustainable fashion and technological innovation in the CEE region.

LPP Group to Build Advanced E-Commerce Fulfillment Center in Tczew

LPP Group has announced plans to construct a state-of-the-art e-commerce fulfillment center in the southern part of Tczew, Poland. The company has acquired land from the Pomorska Special Economic Zone for this strategic investment, with the facility expected to be operational by Q1 2027. The new center will span 60,000 square meters, including a warehouse and a two-story office and social building, with future expansion planned to reach 100,000 square meters.

The facility will be equipped with advanced automation systems to enhance operational efficiency and improve working conditions for employees. It will have the capacity to store over 8 million items and process more than 400,000 clothing and accessory orders daily. Operated by LPP Logistics, this will be the seventh fulfillment center in the company’s logistics network, which also includes three distribution centers.

According to Sebastian Sołtys, CEO of LPP Logistics, the investment is a critical step in scaling the company’s online sales operations and strengthening its competitive edge in international markets. The project aligns with LPP’s strategy to optimize logistics costs while supporting its rapid expansion and growing e-commerce demand.

Relevance to LPP S.A. Profile: This development underscores LPP’s commitment to scaling its e-commerce operations and leveraging logistics automation to maintain cost efficiency, which is a key pillar of its omnichannel strategy and international growth ambitions.

LPP S.A. Increases Share Capital Through Series N Share Issuance

On April 16, 2026, LPP S.A., a leading Polish omnichannel fashion retailer and owner of brands such as Reserved, Sinsay, Cropp, House, and Mohito, announced the registration of amendments to its Articles of Association and an increase in share capital. The Gdańsk-North District Court officially registered the changes on April 15, 2026, following the issuance of 2,818 Series N ordinary bearer shares, each with a nominal value of 2 PLN. This issuance was conducted under the company’s authorized capital framework, as approved by the General Meeting of Shareholders on June 30, 2023.

The new shares were issued as part of a private subscription on April 10, 2026, and were fully subscribed by five eligible individuals at a price of 2 PLN per share. The total value of the subscription amounted to 5,636 PLN. As a result, LPP S.A.'s share capital now stands at 3,717,416 PLN, divided into 350,000 privileged registered shares and 1,508,708 ordinary bearer shares, with a total of 3,258,708 voting rights at the General Meeting.

This capital increase aligns with the company’s ongoing strategy to support its growth initiatives, including its rapid expansion in Central and Eastern Europe and the development of its omnichannel capabilities.

Relevance to LPP S.A.: The share capital increase reflects LPP S.A.'s commitment to fueling its expansion and operational strategies, particularly in the competitive fashion retail market, where financial flexibility is crucial for sustaining growth and addressing external challenges.

Noble Securities Raises Target Price for LPP to PLN 26,300 Amid Positive Revenue and Margin Outlook

Analysts at Noble Securities have increased the target price for LPP S.A. shares to PLN 26,300 from PLN 23,000, while adjusting their recommendation from "Buy" to "Accumulate." The revision follows the company's updated revenue and margin projections, which include an improved gross margin target of 55–55.5% (up from 54–54.5%) and an EBITDA margin of 23–24% (previously 22–23%).

LPP's financial plans for 2026/27 project revenues of PLN 28–29 billion, driven by its omnichannel strategy combining physical store expansion with growing e-commerce sales. However, analysts highlighted potential risks, including slower-than-expected retail network growth and broader economic challenges that could impact consumer purchasing power and demand.

Despite these risks, Noble Securities sees a 17% growth potential for LPP's stock in the medium term, supported by the company's focus on maintaining cost discipline and profitability. The report also noted that LPP's operational cost-to-sales ratio is expected to remain stable at 40–41%.

The recommendation was first published on April 8, 2026, at 14:48.

Relevance to LPP S.A.: This article highlights LPP's strategic focus on omnichannel growth, profitability, and cost management, which are critical to its competitive positioning in the fashion retail market amidst external challenges.

Answear Group Optimizes Marketing Spending and Invests in Automation

Answear Group has announced plans to optimize its marketing expenditures after record spending in Q4 2025. The company aims to streamline operations by investing in automation, with the project estimated to cost several tens of millions of PLN. March proved to be a successful month for sales, signaling positive momentum for the business.

Relevance to LPP S.A.: This article highlights the importance of cost optimization and automation, which aligns with LPP's strategy to reduce unit logistics costs and improve operational efficiency amidst rising labor and rental expenses in the CEE region.

Retail Parks to Dominate Commercial Real Estate Development in Poland Over the Next Two Years

Poland's commercial real estate market is witnessing a significant shift, with retail parks and daily shopping centers emerging as dominant formats in new supply. According to JLL's "Retail Insights" analysis, retail parks accounted for 80% of new supply in 2025, a sharp increase from 30% in 2017. This trend is expected to continue, with over 500,000 square meters of retail park projects currently under construction and projections of up to 700,000 square meters of new space being delivered in 2025.

Smaller towns and suburban areas are driving this growth due to lower market saturation and increasing demand for convenient shopping formats. In contrast, larger cities are nearing saturation, with suburbanization and residential developments fueling demand for daily shopping centers. Developers and investors are actively seeking opportunities in underserved areas, despite challenges such as lower purchasing power.

The commercial real estate sector in Poland also saw heightened transaction activity in 2025, with retail parks and retail warehousing attracting significant investor interest. Both domestic and international investors are increasingly engaging in the market, with expectations of large transactions and sale-and-leaseback deals in the near future.

JLL predicts sustained growth in retail park development over the next 2-3 years, supported by ambitious plans from developers and a diverse pool of capital sources. However, rising market saturation may lead to delays or cancellations of some projects.

Relevance to LPP S.A.: The expansion of retail parks aligns with LPP S.A.'s strategy to grow its omnichannel presence and open smaller-format stores, particularly in underserved regions. This trend provides opportunities for LPP brands like Sinsay to capitalize on growing retail infrastructure in smaller towns and suburban areas.

LPP Targets 2026 Gross Margin of 55-55.5% and Revenue of 28-29 Billion PLN Amid Geopolitical Challenges

Poland’s largest fashion retailer, LPP S.A., has announced ambitious financial targets for 2026, aiming for a gross margin on sales between 55-55.5% and a net profit margin of 9-10%. The company projects revenues to reach approximately 28-29 billion PLN. However, LPP acknowledges that its 2023 performance may be influenced by geopolitical tensions in the Middle East, which could impact global supply chains and consumer sentiment.

The company’s growth strategy continues to focus on the rapid expansion of its Sinsay brand and strengthening its omnichannel presence, leveraging its scale in purchasing and logistics to maintain competitive pricing and operational efficiency. Despite these efforts, LPP remains exposed to external risks such as supply chain disruptions, currency fluctuations, and rising operational costs in Central and Eastern Europe.

Relevance: This announcement highlights LPP’s strategic focus on growth and profitability while addressing the external challenges outlined in its business profile, such as geopolitical risks and supply chain vulnerabilities.