LPP Group posted strong second-quarter results, with revenue rising 18% year-over-year and EBITDA reaching PLN 1.7 billion — a gain of 40% to 50% from a year earlier — driven by healthy consumer demand across its brand portfolio.
Operating profit (EBIT) came in at PLN 1.1 billion, while net profit was nearly PLN 800 million. For the first half of 2026, the group reported EBITDA above PLN 3 billion, operating profit exceeding PLN 1.8 billion, and net profit of PLN 1.2 billion.
Gross margin improved to 57.7% in the quarter, up 3.7 percentage points year-over-year. The company raised its full-year 2026 gross margin guidance to 56.5%–57%, from a previously forecast 56%. That figure is expected to ease to around 56% in 2027, management said.
Sales growth split evenly between channels in the quarter: offline sales rose nearly 19%, and online sales climbed more than 16%, rebounding from just 1% growth in the first quarter. Like-for-like sales across the group rose 1.8% in Q2, though they fell 0.3% for the half-year.
Performance varied by brand and geography. Sinsay, the group’s fast-fashion label, saw like-for-like sales drop 1.2% in Q2 and 3.8% for the first half. Southern Europe, already weak in Q1 with a 1.5% decline, worsened to a 4.5% fall in the second quarter.
Back-to-school demand provided a bright spot. Between August 17 and September 6, Reserved and Reserved Kids plus Sinsay saw omnichannel sales jump 23% year-over-year, with offline growth of 19% and online growth of 30%. Teen-oriented brands Cropp and House grew 20% omnichannel, driven by a 42% surge in online sales.
LPP continued expanding its footprint, opening 230 new stores in Q2 and 351 in the first half, including 314 under the Sinsay brand. Total group stores surpassed 4,000 by end-H1, with nearly 2,700 carrying the Sinsay name. The company aims to exceed 3,000 Sinsay locations by year-end.
Capital expenditure for 2026 was set at PLN 2.5 billion, with over PLN 1 billion already spent in the first half — more than half a billion on store openings and over PLN 440 million on logistics. A new distribution center in Constanța, Romania, became fully operational in July.
The group also recovered more than PLN 250 million from insurance claims relating to a fire at a facility in Romania. Total liquidation process charges to profit and loss are below PLN 350 million.
On the capital return front, a second dividend tranche of PLN 500 per share is scheduled for payment on October 9. Meanwhile, Sinsay launched a marketplace platform in Poland, with management targeting gross merchandise value of PLN 40 million to PLN 50 million next year.
At the time of reporting, LPP shares were up 3.23% at $22,380, within a 52-week trading range of $15,405 to $24,480.
