Lpp

LPP S.A. Reports Strong Sales Growth and Expansion in Q3 2025

LPP S.A., Poland's leading omnichannel fashion retailer, has announced preliminary operational data for Q3 2025, showcasing a robust 23% year-on-year increase in revenue in constant currencies. Both offline and online sales grew by 24% and 22%, respectively, reflecting the company's effective omnichannel strategy. Same-store sales (LFL) rose by 4.3%, with brands Reserved, Cropp, House, and Mohito achieving a notable 10.8% growth, while Sinsay experienced a slight decline of 1.7%.

During the quarter, LPP opened 232 new stores, including 200 Sinsay locations, bringing the total number of new stores in 2025 to 664. The company also expanded its retail space by 26% year-on-year to 2,850 thousand square meters, with Sinsay contributing significantly with a 48% increase in space. LPP maintained its focus on maximizing gross margins and managing SG&A costs efficiently to ensure profitable growth.

The final financial results for Q3 2025 will be published on December 11, 2025, following the completion of the accounting process.

Relevance: This report highlights LPP's continued growth and strategic expansion, particularly through its Sinsay brand and omnichannel approach, aligning with its business profile and market opportunities in Central and Eastern Europe.

Positive Opening Expected on GPW Amid Mixed Global Market Trends

Friday's trading session on the Warsaw Stock Exchange (GPW) is anticipated to open on a positive note, despite mixed performances across global markets. Asian markets experienced significant declines, with South Korea's KOSPI dropping 1.62% and Japan's Nikkei 225 losing 1.33%. Meanwhile, European futures indicate slight gains, with Stoxx 50 futures up 0.20% and DAX futures rising 0.17%. U.S. futures also show modest increases, ranging from 0.19% to 0.26%.

In the commodities market, precious metals are strengthening, with gold gaining 0.73% and silver rising 1.44%. Additionally, the National Bank of Poland (NBP) is set to present its inflation and GDP projections for November 2025, which could influence market sentiment.

Key corporate updates include Dino Polska reporting a Q3 net profit of PLN 481.9 million, slightly below market expectations, and InPost achieving a Q3 adjusted EBITDA of PLN 1.06 billion, surpassing forecasts. Other notable updates include Pepco Group securing €770 million in credit agreements and Onde reporting an 18% year-on-year revenue increase in Q3 2025.

Global political developments, such as U.S. President Donald Trump's agreement with pharmaceutical companies to lower drug prices and the Senate's blockage of a resolution limiting military actions in Venezuela, also add to the broader market context.

Relevance to LPP S.A.

This article is relevant to LPP S.A. as it highlights global market trends and economic factors, such as inflation projections and currency fluctuations, which directly impact LPP's operational costs, supply chain, and overall market performance.

Polish Retail Market Sees Surge in Retail Parks and Convenience Centers

The Polish retail market is experiencing a significant transformation, with retail parks and convenience centers emerging as dominant formats. By mid-2025, retail parks accounted for 19% of the total retail space in Poland, while convenience centers represented 9%, according to a report by JLL and Trei Real Estate Poland. The total retail space in the country reached 17.9 million square meters, with smaller towns (under 30,000 residents) seeing a growing share of new developments.

Between 2019 and 2024, annual retail space supply grew steadily, with retail parks making up 71% of new developments in 2024, compared to 20% in 2019. Smaller towns are becoming key investment areas, with 25% of retail park and convenience center developments located in towns with fewer than 30,000 residents. In the first half of 2025, 532,000 square meters of retail space were under construction, with 315,000 square meters in towns with populations under 75,000.

Retail parks are evolving into multifunctional destinations, incorporating restaurants, fitness centers, and medical facilities alongside traditional retail. Value retailers, such as Pepco and Action, dominate tenant profiles, reflecting consumer demand for affordable options. Investment in retail parks remains robust, with 11 transactions worth €193 million recorded in the first half of 2025, marking the second-highest half-year result in history.

Experts predict continued growth in this segment, driven by declining interest rates in the Eurozone and strong investor competition. Retail parks have solidified their position as one of the most attractive investment products in Poland's real estate market.

Relevance to LPP S.A.: The expansion of retail parks and convenience centers aligns with LPP S.A.'s strategy to grow its omnichannel presence and capitalize on underserved markets in smaller towns, particularly for its value-oriented brands like Sinsay.

Fashion and Luxury Sector Faces Valuation Decline Amid Economic Uncertainty

The global fashion and luxury sector is entering a phase of stabilization and valuation corrections, with 65% of investors expecting a decline in company valuations, according to Deloitte's "Fashion & Luxury Private Equity and Investors Survey 2025." In 2024, the sector saw 333 mergers and acquisitions (M&A), a 7% drop compared to the previous year, with the most significant declines in luxury cars, jewelry, and private jets. Despite this slowdown, 90% of investors remain interested in the sector, citing its resilience and long-term growth potential.

Europe continues to dominate as the preferred region for investment, with 75% of respondents identifying it as the most promising market. Meanwhile, China is losing its appeal due to economic challenges and trade barriers, with investors shifting focus to India, Japan, and South Korea. The report highlights the growing importance of sustainability, ethical supply chains, and artificial intelligence in shaping the future of the industry. Additionally, the sector is becoming increasingly polarized, with the wealthiest 0.1% of consumers accounting for 23% of global luxury spending.

While the average transaction value in 2024 varied across segments, the apparel and accessories sector saw growth, with an average deal value of $476 million. Investors are also diversifying portfolios to include complementary areas such as resale and accessories, with 49% of respondents exploring these opportunities. ESG considerations are gaining traction, particularly in cosmetics, apparel, and furniture industries, as brands adapt to evolving consumer expectations.

Relevance to LPP S.A.: The article underscores the challenges and opportunities in the fashion sector, directly aligning with LPP S.A.'s focus on navigating economic uncertainties, leveraging omnichannel strategies, and expanding in underpenetrated markets like Central and Eastern Europe. The emphasis on sustainability and AI-driven efficiencies also resonates with LPP's strategic priorities.

Retail Sales in September 2025 Rise by 6.4% Year-on-Year, Textile and Apparel Sector Leads with 20.5% Growth

According to data released by the Central Statistical Office (GUS), retail sales in constant prices increased by 6.4% year-on-year in September 2025, while declining by 2.7% month-on-month. In current prices, retail sales rose by 6.6% year-on-year. Notably, the textile, clothing, and footwear category experienced a significant 20.5% year-on-year growth in constant prices, highlighting strong consumer demand in this sector. Additionally, online retail sales in current prices grew by 8.8% compared to the same period last year.

Economists had forecasted a slightly higher year-on-year growth of 7.1% in constant prices and a smaller month-on-month decline of 1.8%. Despite this, the robust performance of the apparel and footwear segment underscores its resilience and growing importance in the retail landscape.

Relevance to LPP S.A.: The strong growth in the textile, clothing, and footwear sector directly aligns with LPP S.A.'s core business, particularly benefiting its value-driven brands like Sinsay, which are well-positioned to capture increasing consumer demand in this category.