LPP (LPP) Q2 24/25 earnings summary

Executive summary

• Q2 2024 revenue reached PLN 5.0 billion, up 9.4% year-on-year, with strong omnichannel sales growth and standout performance from Sinsay and House brands.

• Offline sales grew 17.5% year-on-year, online sales up 12%, and gross margin improved by 4.6 percentage points to 52.5%.

• Operating profit was PLN 611 million, EBITDA surpassed PLN 1 billion (+7.9% year-on-year), and 122 new stores were opened, mainly Sinsay.

• Positive customer response to autumn/winter and Back to School collections, with omnichannel sales up 32% year-on-year from August to mid-September.

• Sinsay led store expansion, contributing 47% of revenues and growing 42.6% year-on-year.

Financial highlights

• H1 2024 revenue was PLN 9.3 billion (+13.3% year-on-year), with net profit at PLN 720 million (+30.1% year-on-year).

• Gross margin improved to 52.5% in Q2 (+4.6pp year-on-year); EBIT margin at 12.2% in Q2; EBITDA margin improved.

• Online sales accounted for 25% of total sales in H1, growing 17.3% year-on-year.

• Inventory turnover was 134 days, with inventory per square meter up 5.5% year-on-year.

• CapEx in Q2 exceeded PLN 400 million, mainly for store network and logistics development.

Outlook and guidance

• Positive outlook for Q3 with strong sales in Back to School and autumn/winter collections; group revenue up over 30% year-on-year from August to September.

• Plans to open over 140 new stores in Q3 and 700 stores for the full year, mostly Sinsay.

• Targeting PLN 20–21 billion in group revenues and gross margin of 52–53% for the year; operational costs to revenue below 40%.

• CapEx guidance for 2024 is PLN 1.5 billion, with PLN 1.2 billion for stores.

• Plans to maintain safe debt levels and no bond rollovers.