Reserved and Sinsay owner says sales and profits rose in Q1

By

Sandra Halliday

Published
Jun 16, 2023

LPP — the Poland-based owner of the Reserved and Sinsay brands, among others — has reported strong Q1 results with its revenues topping PLN3.6 billion (€807m/£690m/$884m), an increase of almost 20% year on year.

That rise exactly matched its space expansion with the company having opened 92 new stories in the February-April quarter, also an increase also of 20%. 

It also said that its “effective use of the omnichannel sales potential in nearly 40 markets in total provided the company in the first quarter of this year. more than three times higher net profit [year on year] at PLN112 million.

That came as physical store sales rose 34%.

It said “the stable dynamics of e-commerce sales brought the company over PLN900 million in sales in the last quarter”. Some 70% of e-sales came via mobile.

The company has a clear omnichannel focus and across channels, the Mohito brand once again recorded a high growth rate of nearly 25%. That said, the highest sales of all the brands continued to come from Sinsay, which brought the company over PLN1.5 billion in the first quarter.

LPP is heavily focused on international growth and particularly in Europe. This meant the share of international sales for the quarter was 58%, up from 52% a year ago.

Its growth plans for the rest of the current financial year remain the development of its markets in Southern and Western Europe and the widening of its physical stores footprint with another 400 new locations. 

It has opened new stores in recent periods in Romania, Macedonia, Serbia, Bulgaria and Bosnia and Herzegovina. It’s planning expansion in the UK market this year too.

That said, it promised to maintain “cost discipline” having kicked off a cost-cutting campaign recently. That came as it said its customers were resistant to inflation-linked price hikes, particularly for value brands such as Sinsay.

But as mentioned, Sinsay did well in the latest Q1 with “high increases and good sales dynamics”. It also said that a positive reception for both women's and men's was seen for Reserved. Meanwhile, Mojito and Cropp also saw sales rising in high double-digits.