LPP Shares Pop After Second-Quarter Profits Jump

By Joe Stonor

Shares in LPP Group jumped to a five-month high after the Polish fashion retailer reported a sharp rise in profits over the second quarter, pointing to a recovery in online demand and wider margins.

The stock rose 7% in early afternoon European trade Friday, leading the continent-wide Stoxx 600 index.

The group--which houses the Reserved and Sinsay brands--booked net profit of 768 million Polish zloty ($202.3 million) in the second quarter, a 64.5% on-year jump and around 8% ahead of consensus estimates, according to LSEG. Profit over the first half of 2026 rose 56% to 1.24 billion zloty.

Profits were driven by a sharp rise in sales volumes. Second-quarter sales revenue was 18% higher on-year, rising to 6.58 billion zloty, helped in part by improvement in the group's online performance. Online sales jumped over 16%.

A significant widening in profit margin--due to improved efficiency and the strengthening zloty against the dollar--also helped headline profit figures. Gross profit margins on sales expanded 3.7 percentage points in the second quarter to 57.7%.

As well as improving online performance, the group opened 351 stores in the first half of the year, driven by flagship brand Sinsay. The group aims to have over 3,000 Sinsay stores by the end of the year, located mainly across eastern Europe. Sinsay generates around 57% of the group's sales.

The group raised its gross profit margin guidance for the year to between 56.5% and 57%, from 56%, leaving its other forecasts unchanged. It expects to generate full-year sales of between 26 billion zloty and 27 billion zloty, rising to 30 billion zloty to 31 billion zloty in 2027.

Sales in 2025 were 23.11 billion zloty.

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

(END) Dow Jones Newswires

September 18, 2026 07:38 ET (11:38 GMT)