Polish Fashion Retailer LPP Shares Jump to Record High on Higher Sales

By Joe Stonor

LPP was the biggest riser on the Europe-wide Stoxx 600 index after the Polish fashion retailer reported higher sales for fiscal 2026.

Shares in the Warsaw-listed group jumped 9.3%, or 1,855 Polish zloty, to a record high of 21,760 zloty in early afternoon European trade.

The company--which owns a stable of fashion brands and operates 3,748 stores in 35 countries--reported revenue of 23.11 billion zloty ($6.25 billion) for the year ended Jan. 31 compared with 20.19 billion zloty for the comparable period a year earlier, and a forecast range of 23 billion zloty to 23.5 billion zloty provided in December.

Net profit for the year was 1.50 billion zloty, compared with 1.74 billion after the company booked higher costs. Fiscal fourth-quarter net profit of 714 million zloty was 23% ahead of market expectations, and a 59% hike on the prior year period, analysts at Citi said.

Earnings before interest, taxes, depreciation and amortization--one of the company's preferred metrics--rose to 4.57 billion zloty from 4.10 billion zloty.

The company has targeted a gross profit margin on sales of between 55.0% and 55.5% for the year ahead, compared with 55.6% in fiscal 2026. Operating profit margin for the year was 14.3%, compared with 12.4% in fiscal 2025.

Sinsay, the group's flagship brand, grew its retail presence significantly, adding 876 stores over the fiscal year. The group is looking to the brand's presence in Central Asia after it opened new Sinsay stores in a clutch of Eastern European countries in 2025.

LPP warned that conflict in the Middle East could extend delivery times and increase supply costs for the wider fashion industry. In response to the dollar's strengthening as inflation fears mount, the group said it is gradually hedging its dollar-zloty exposure.

Write to Joe Stonor at josephmichael.stonor@wsj.com

(END) Dow Jones Newswires

March 26, 2026 09:49 ET (13:49 GMT)