LPP assumes offline revenue growth of 25% y/y in FY 2023/2024 (February 2023 – January 2024) thanks to an increase in space (2,340 stores) and positive LFL. Online revenue, on the other hand, is expected to be stable y/y, with Group revenue of around 18 billion zlotys, the company said in its earnings presentation.
LPP also assumes capex of PLN 1.1 billion for the 2023/2024 fiscal year, including PLN 800 million for stores, and normalization of working capital: liabilities higher than inventories and lower y/y net debt/ EBITDA, it said.
Gross margin on sales is expected to be 51 -53%, with cost savings (performance marketing, logistics) of more than PLN 0.5 billion. In turn, the EBIT margin will be over 10%, it was also stated.
LPP manages the Reserved, Cropp, House, Mohito and Sinsay fashion brands. The company has been listed on the Warsaw Stock Exchange since 2001. In the 2022/2023 fiscal year (February 2022 – January 2023), the company had PLN 15.9 billion in consolidated revenues.
Source LPP and ISBnews
