
Earnings · Expansion · Fashion Retail · LPP
Polish fashion retailer LPP reported a significant fourth-quarter net profit increase of 58.7% year-over-year to 714 million zlotys ($193 million), exceeding analyst estimates, which propelled its shares to surge 7.2% on Thursday.
For the full year 2025, LPP's net profit rose 36% year-over-year to PLN 2.4 billion, with revenue increasing 19% to PLN 23 billion, or 21% in constant currencies. This robust performance was driven by double-digit growth in both offline sales (up 22% YoY in constant currencies) and online sales (up 19% YoY), with e-commerce now comprising 28% of total sales.
Profitability metrics also improved, with EBITDA rising 31% year-over-year to PLN 5.4 billion and operating profit increasing 37% year-over-year to PLN 3.3 billion, supported by a 55.6% annual gross margin from high full-price sales and favorable exchange rates. CEO Marek Piechocki stated the results provide a "solid foundation for further profitable growth." The company's aggressive expansion included opening over 1,000 new stores in 2025, entering six new international markets, and increasing total retail space by 25% year-over-year across 46 markets.
LPP invested a record PLN 3.2 billion in capital expenditures, significantly expanding its logistics automation. The company recommended increasing its dividend to PLN 900 per share, marking its fifteenth consecutive year of dividend payments.
LPP Profit Soars 59%, Shares Jump 7%(current)