Polish fashion retailer LPP Group reported Q2 net profit of 768m zlotys ($202.2m), up 64.5% year-on-year (YoY) on a reported basis and 47.8% on a comparable basis adjusted for a prior-year Russia-related receivables write-off.
Sales revenue for the three months to 31 July 2026 rose 18.4% to 6.57bn zlotys, with both stores and online returning to double-digit growth.
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Operating profit in the quarter was 1.12bn zlotys, compared with 689m zlotys a year earlier.
LPP finance vice-president Marcin Bójko said: “In the second quarter, we observed a more favourable sales environment compared with the start of the year. Consumer sentiment in key markets stabilised, and interest in our brands’ collections grew not only thanks to new store openings but also in our existing stores.”
LPP operates five brands, namely Cropp, House, Mohito, Reserved and Sinsay, across 47 markets and has a network of more than 4,000 outlets.
Store sales increased 18.6% YoY. During the quarter, LPP opened 230 stores, including 212 Sinsay outlets, taking its total number of stores to more than 4,000.
Sinsay represents close to 2,700 of the group’s stores.
Online revenue rose 16.4% YoY, returning to double-digit growth after a warehouse fire in Romania earlier in July 2025 disrupted logistics across south-eastern Europe and had held back growth.
LPP spent 506m zlotys in the quarter, including 279m zlotys on new stores and 146m zlotys on logistics projects.
These included the expansion of its distribution centre in Brześć Kujawski and its e-commerce warehouse in Tczew.
For the six months to 31 July 2026, net profit rose 55.6% to 1.24bn zlotys while sales revenue increased 14.7% to 12.04bn zlotys.
Operating profit for the first half increased 57.4% to 1.81bn zlotys.
After reporting its first-half results, LPP increased its full-year profitability targets and left its revenue and capital expenditure targets unchanged.
The group maintained its core business sales target at 26bn to 27bn zlotys and its capex target at 2.5bn zlotys.
It raised its gross margin forecast to 56.5-57% from 56%, its EBITDA margin forecast to 24%-25% from 23.5%-24.5%, and its net profit margin forecast to 10%-11% from 9.5%-10.5%.
