LPP increasing net profit and margins in H1 2010

2010-09-06

LPP, the operator of, among others, Reserved, House and CroppTown clothing brands, expects the demand for clothing to grow in the second half of 2010. After the first six months of 2010, the company reported PLN 906.1m (€226m) of sales revenues, reflecting a 5% decline when compared to H1 2009. Net profit went up by 48% year on year to PLN 33.1m (€8.2m) in H1 2010, mainly thanks to the stable exchange rate of the US dollar. On a like-for-like basis the sales went down by 18.8% when compared to H1 2009.
From January to June 2010, the LPP’s retail space was enlarged by 34 stores, i.e., 11,000 m² to 299,000 m². In total, the group plans to add 40,000 m² to its retail area in 2010, which will cost PLN 59m (€15m).
The company also plans to work on expanding its online sales. At present, the e-stores generate 3% of the total sales revenues. In the next several years, the e-sales are expected to grow by several percent as in 2011, and the company will launch an online store of the Reserved brand.