The company’s e-commerce division also experienced steady growth. It achieved over PLN 900 million in sales in Q1, representing approximately 26 per cent of the group’s total revenue, LPP said in a media release.
Polish clothing company LPP’s revenues hit PLN 3.6 billion ($887.1 million) in Q1 FY24, an increase of 20 per cent YoY.
Store expansions led to a 34 per cent surge in offline sales in Q1 FY24, while e-commerce represented 26 per cent of total revenue.
The company’s foreign revenues made up 58 per cent of the total, fuelled by growth in European markets.
In terms of omnichannel sales, the Mohito brand witnessed a high growth rate of nearly 25 per cent YoY. Meanwhile, the highest sales were driven by the Sinsay brand, which contributed over PLN 1.5 billion in the first quarter.
LPP’s strategic plan to strengthen its brand presence across European markets has been a primary source of growth this quarter. Foreign revenues accounted for a significant 58 per cent of the group’s total revenues during this period.
In alignment with this strategy, the company expanded its retail floor space abroad by over 25 per cent YoY, thanks to new stores in Romania, Macedonia, Serbia, Bulgaria, and Bosnia and Herzegovina. As a result, between February and April 2023, LPP’s total retail floor space grew by nearly 20 per cent.
“We can see that the market is reacting positively to our efforts to strengthen our position abroad, and that customers from outside Poland are eager to buy our collections. On the one hand, this is due to our investment outlays on the development of the sales and distribution network, which is in line with the needs of the modern omnichannel customer, who alternates between traditional and online stores. On the other hand, it shows that by having a wide portfolio of brands and conducting an optimal pricing policy tailored to the characteristics of the customer, we are responding to diverse needs, while at the same time tapping into the potential of the markets in which we are already present,” said Przemyslaw Lutkiewicz, vice-president of the management board, LPP.
Fibre2Fashion News Desk (DP)
