LPP fashion intends to maintain rapid growth in 2026

"It is not in the nature of LPP to slow down and in 2026 we will probably want to maintain a similar scale [of growth - PAP ed.]," the deputy CEO told a conference call.

"We are focusing on growth, but we are doing it carefully, we are monitoring profitability. The priority is to prove the target in a profitable way so that the margin and net result are good," he added.

At the end of October, the LPP group's network comprised 2,574 stores, up by 368 year on year.

In the entire 2024 financial year, which will end in January 2025, the LPP group intends to open a total of around 650 new stores in Poland and abroad. The accumulation of openings is scheduled for the fourth quarter.

The target for 2025, on the other hand, is to increase the group's sales network to 4,400 shops, including around 3,000 Sinsay brand shops. The group's retail space is to increase by 35-40 percent.

Under the Sinsay brand, 560 stores are to be opened this year (of which 275 in the fourth quarter), and 1,500 Sinsay stores are planned to open next year.

"We plan to accelerate the development of the stationary network. So far LPP has been going fast, now we are shifting to Formula 1. Opening 1,500 stores in one year is something unprecedented in our industry and in the region. It shows the scale of our ambitions," Bojko said.

"We see that our omnichannel model is appreciated by customers. Every new opening generates very good sales. We have been familiarising ourselves with the indicators, we see that the model is working, so we think this is the moment to accelerate. We have invested and are investing in logistical capacity, strong teams to open 1,500 salons in 2025, that's six salons a day. We are ready for that," he added.

The deputy CEO reported that due to available locations in Southern Europe, the average Sinsay store retail space is shrinking. According to Bojko, last year the store had an average of 970 square metres, this year newly opened salons have 800-850 square metres each, and in 2025 the average area will be around 700 square metres.

"Even the smaller Sinsay stores are delivering good profitability," Bojko assessed.

As he pointed out, the company wants each newly opened store to pay for itself in no more than 24 months.

Plans for next year include a debut in two new foreign markets: Albania and Kosovo.

Asked about freight rates next year, Bojko replied: "Freight rates on the main destinations have increased slightly year on year, there has been some growth on the smaller ones. Per balance, we are satisfied with the process".

pel/ ao/ nl/