Weak results for LPP in Q3 2009

2009-11-16



LPP, the largest Polish clothing group, which manages brands such as Reserved, CroppTown and House, has reported a 16.2% decline in like-for-like sales in the third quarter of 2009, whereas in the first three quarters of the year the reduction was 9%, according to Puls Biznesu. The results reflect the warm weather in September, which did not encourage sales of the autumn collections.
The company expects its sales to improve in 2010. At present it is working on cost reductions. In 2010 LPP also plans to expand its retail space by up to 50,000 m². At the end of 2009 the area of the group’s stores is expected to be 65,000 m² more than that of 2008. The increase in retail space in 2009 has exceeded expectations – as a result of the crisis the group has acquired franchisees who withdrew from cooperation with other companies.