Sinsay Drives LPP Profit Up As Expansion Accelerates

LPP, Poland’s largest fashion retailer and the parent company behind brands such as Reserved and Sinsay, recently announced a 5.4% increase in its second-quarter net profit. This boost was primarily driven by the sustained strong performance of its budget-friendly Sinsay chain. The company reported a net profit of 467 million zlotys ($127.75 million) for the quarter, a figure that was slightly below analysts’ consensus forecast of 497 million zlotys.

The Polish retail giant is aggressively pursuing a rapid European expansion strategy, with Sinsay positioned at the forefront of this growth. Designed as an entry-level fashion brand to compete with fast-fashion players like Inditex’s Bershka, Sinsay is central to LPP's future ambitions. The group aims to significantly expand its retail footprint, targeting a 25–30% increase in overall retail space by 2025. Ambitiously, LPP projects that Sinsay will account for 75% of the group's total sales, and plans to grow its store network to approximately 7,500 outlets by the close of 2027.

LPP has reported that the positive momentum observed in the second quarter has continued into the third. From August 1 to September 21, the company recorded healthy like-for-like (LFL) sales growth across its operations. During this period, online sales saw a significant 24% year-on-year increase, contributing to an overall group sales growth of 22% when measured in constant currencies. Despite this forward trajectory, LPP recently revised its revenue forecast for the 2025/26 fiscal year to between 23 and 24 billion zlotys, a reduction from its previous projection of 25–26 billion zlotys. This adjustment was attributed to unusually cold weather conditions in May, which negatively impacted demand for its spring-summer collections.

Breaking down the second-quarter financials further, the 5.4% increase in net profit brought the total to 467 million zlotys, compared to the same period in the previous year. Revenue for the quarter also saw a substantial climb, rising 11% to reach 5.55 billion zlotys. Demonstrating its commitment to expansion, LPP successfully opened 432 new stores across its various brands during the first half of the year. (Currency conversion: $1 = 3.6556 zlotys)