LPP sees higher revenues from foreign sales than from sales in Poland

In Q2 2019, LPP, a Polish clothing manufacturer and owner of five fashion brands, for the first time in history recorded higher revenues from foreign sales than from sales in Poland.

LPP’s foreign sales higher than domestic

In Q2 2019, sales revenues of the Polish clothing manufacturer LPP exceeded PLN 2.2bn. In the first half of 2019, total sales of the group amounted to over PLN 4bn. According to the company, the results in the second quarter were positively influenced by the increase in the area of its chain stores and e-commerce channel. In addition, for the first time in history, foreign sales were higher than in Poland.

At the end of the second quarter, the owner of five fashion brands – Reserved, House, Cropp, Mohito and Sinsay – was present on 24 markets. Przemysław Lutkiewicz, LPP’s Vice President for Finance, said he sees growth potential in South-Eastern Europe. Following LPP’s recent debuts in Slovenia and Bosnia and Herzegovina, the company intends to open stores in North Macedonia. In the second half of the year, LPP also plans to debut all its brands in Finland.

Sharp increase of e-commerce sales

LPP Internet sales grew dynamically in the second quarter of 2019, by 45% year on year, thanks to, among other things, the development of online stores abroad. According to Przemysław Lutkiewicz, the mobile channel, which is currently responsible for over half of LPP’s revenues from e-commerce, also has a potential for growth.

This year LPP wants to exceed PLN 1bn in sales in the e-commerce channel. Therefore, by the end of the year, LPP’s online offer will be available throughout the entire EU and Ukraine.

Clothing and footwear market in Poland is growing

LPP is the leader of the Polish clothing market, while another Polish company CCC is the leader of the footwear market in Poland. According to PMR’s estimates, the Polish clothing and footwear market in 2018 was worth almost PLN 37bn.

According to PMR’s forecasts presented in the report, “Clothing and footwear retail market in Poland 2019”, the growth in the value of this market will continue in 2019 and will amount to approximately 5% year on year.

LPP manages five fashion brands: Reserved, House, Cropp, Mohito and Sinsay and is present in 24 markets. The LPP store chain comprises over 1,700 stores.

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