Business
Polish fashion retailer LPP confirms annual revenue goal of up to $5.5 billion
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GDANSK (Reuters) – Poland’s largest apparel retailer LPP confirmed its full-year revenue target of 20-21 billion zlotys ($5.2-5.5 billion) on Wednesday after posting a flat second-quarter net
GDANSK (Reuters) – Poland’s largest apparel retailer LPP confirmed its full-year revenue target of 20-21 billion zlotys ($5.2-5.5 billion) on Wednesday after posting a flat second-quarter net profit, as rising costs of stores and distribution offset higher sales.
Second-quarter net profit edged up a little over 1% to 444 million zlotys from a year earlier, with sales up 9% to 5.01 billion zlotys.
The modest uptick was offset by a 27% jump in the costs of stores, distribution, and overheads to more than 2 billion zlotys, with the company citing the development of its store network, logistics spending and personnel costs.
The group expects third-quarter sales to rise 32% year on year on a constant currency basis. It also plans to open 140 new stores in the three-month period.
LPP, the biggest retailer in Poland, is rapidly expanding into European markets, especially in the Central-Eastern and Southern Europe regions, which accounted for a third of total revenue in the second quarter.
The expansion comes after the company sold its Russian business in June 2022, after Russia invaded Ukraine.
($1 = 3.8291 zlotys)
(Reporting by Mateusz Rabiega; Editing by Kirsten Donovan)
Net profit is the amount of money a company earns after all expenses, taxes, and costs have been subtracted from total revenue. It is a key indicator of a company's profitability.
Sales projections are estimates of future sales revenue based on historical data, market analysis, and economic conditions. They help businesses plan for growth and manage resources effectively.
Retail expansion refers to the process of a retail company increasing its presence in the market by opening new stores or entering new geographic areas to boost sales and market share.
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