LPP expects revenues in range of PLN 20-21 bln and 52-53 pct gross margin on sales in ‘24

Listed fashion group LPP expects revenues in the range of PLN 20-21 billion (EUR 4.7-4.9 bln) and a 52-53 percent gross margin on sales in the 2024 financial year, the company said in its half-year report. Previously, LPP had targeted around PLN 21 billion (EUR 4.9 bln) of sales for this year.

"Taking into account the above opportunities and risks, as well as the increase in retail space, positive LFL and double-digit y/y sales growth in the online channel, the group expects 2024 revenues in the range of PLN 20-21 billion and a gross sales margin of 52-53 percent," it wrote.

The company also expects to maintain cost efficiency (ratio: operating costs/sales below 40 percent) and capital expenditure of PLN 1.5 billion (EUR 351.9 mln), of which PLN 1.2 billion (EUR 281.5 mln) for shops.

Additionally, the company wants to maintain a safe level of debt and has no plans to roll over bonds.

In June, LPP projected to achieve around PLN 21 billion (EUR 4.9 bln) in sales and 52-53 percent gross sales margin in the 2024 financial year. CAPEX was assumed at PLN 1.5 billion (EUR 351.9 mln).

pel/ nl/