LPP (LPP) Q2 26/27 earnings summary

Executive summary

• Revenue for 1H 2026 reached PLN 12.0 billion, up 14.7% year-over-year, with Q2 growth accelerating to 18.4% YoY, driven by offline expansion and online recovery.

• Sinsay led brand performance, accounting for 57% of sales and driving network expansion with 314 new stores in 1H 2026 and 230 in Q2; total group stores now exceed 4,000, including nearly 2,700 Sinsay locations.

• Launched Sinsay marketplace in Poland in August/September 2026, focusing on quality, synergy, and new product categories, with over 100,000 products.

• Operational efficiency improved with new fulfillment and distribution centers in Romania, replacing assets lost in a fire and supporting South-Eastern Europe growth.

• Initiatives to boost Sinsay sales include collection adjustments, store remodeling, increased performance marketing, and omnichannel expansion.

Financial highlights

• Q2 26/27 revenue reached PLN 6.6bn (+18% YoY), EBITDA PLN 1.7bn (+42% YoY), operating profit PLN 1.1bn (+57% YoY), and net profit PLN 768m (+48% YoY); H1 EBITDA was PLN 3,026 million (+41.9% YoY), EBIT PLN 1,815 million (+57.4% YoY), and net profit PLN 1,243 million (+55.6% YoY).

• Gross profit margin improved by 4.0 pp YoY to 58.0% in H1 and by 3.7 pp YoY in Q2 to 57.7%, supported by favorable FX rates and lower freight costs.

• Online sales rebounded to +16% YoY in Q2 after a weak Q1, with H1 online sales up 8.4% YoY to PLN 3.1 billion.

• Inventory turnover improved to 157 days from 176 days YoY; inventory per m² fell 16.9% YoY.

• Net debt/EBITDA improved to 1.0 from 1.3 YoY, with over PLN 1.8bn in operating cash flow.

Outlook and guidance

• FY 2026 sales targeted at PLN 26–27 billion, with 15% YoY floorspace growth, mainly Sinsay; gross margin expected at ~56%, operating cost ratio at 40–41%, and capex at PLN 2.5 billion.

• Medium-term targets for 2027: revenue PLN 30–31 billion, gross margin 55–56%, EBITDA margin 23–24%, net profit margin 9–10%, and capex PLN 2.0 billion.

• CapEx guidance for 2026 remains at PLN 2.5 billion, with over half allocated to store openings and PLN 440 million to logistics in H1.

• 3Q outlook positive: autumn collection well received, sales up 20% YoY (constant currency), margin higher than last year.

• Planned opening of approximately 450 new stores in 2H 2026 across all brands.