Poland's LPP second-quarter profit jumps on robust store sales, cost control

Sept 17 (Reuters) - Poland's largest fashion retailer LPP reported a 64% rise in second-quarter net profit to 768 million zlotys ($202.50 million) on Thursday, driven by strong revenue growth across online and offline channels.

Its operating profit jumped 63% to 1.13 billion zlotys, above company's earlier estimates.

LPP's brand portfolio includes its flagship label Reserved and discount-focused Sinsay, which has become central to its growth plan. The company has been pursuing international expansion through Sinsay while investing in technology, including AI.

• Second-quarter revenue rose by 18.4%, driven by increase in physical store sales, with its core Sinsay brand accounting for the majority of the absolute growth

• For 2026, LPP expects a gross margin of 56.5% to 57.0% and plans to lift selling space by 15%, focusing on roughly 750 new Sinsay stores

• In 2027, the retailer expects revenue to reach 30 to 31 billion zlotys with a gross margin between 55.0% to 56.0%

• The group plans selective market saturation, a Sinsay marketplace, and new geographies including Central Asia, alongside a continued mobile app rollout

• The retailer cited favorable exchange rates, cost control, and new technology as support factors, while warning of geopolitical risks and weaker regional growth

(Reporting by Marta Maciag; Editing by Matt Scuffham)