LPP CEO: Our group can change, but Sinsay will not be different

As a leading fashion retailer in Central and Eastern Europe, LPP Group remains confident in its strategic direction and financial outlook for the year. Despite facing a challenging retail environment, including a slight dip in comparable store sales during the first quarter, our core business remains robust. We are committed to achieving our ambitious revenue and profitability targets, demonstrating our resilience and adaptability in a dynamic market.

“

We are delivering the targets set for this year.

The recent performance, showing a 2.8% decrease in like-for-like sales in Q1, was influenced by factors beyond our control, such as unseasonably cool weather impacting the uptake of our early spring collections. This is a temporary setback, and we are already seeing positive trends in May. While most of our brands are performing well, we acknowledge that Mohito is currently underperforming, and we are implementing targeted strategies, including a new team, to revitalize its sales.

“

We are still thinking about revenues. The gross margin might be too low for the year. EBITDA and operating result are not threatened.

Looking ahead, LPP is embracing innovation to enhance operational efficiency and customer experience. Our investment in Artificial Intelligence and process automation is key to navigating future challenges, including mitigating the impact of weather on sales. As our founder and CEO Marek Piechocki emphasized, LPP has a proven track record of transformation and achieving the seemingly impossible. We are confident that our forward-thinking approach, combined with our strong brand portfolio, will ensure continued success and growth.

“

In May, positive 'likes' are maintained everywhere except Mohito. We are waiting until autumn. We have a new team there.