LPP blames lower sales forecast on clothes being too trendy

According to the corrected forecast, net profit will be about zl.53 million, a 12% decrease on previous forecasts. "After calculating sales and gross margin results in November, we estimate that we have little chance of fulfilling the forecasts," said Dariusz Pachla, deputy president of LPP. Turnover in November was 19% higher than in the same last year. "Most likely the reason is that our collection was too out of the ordinary and it did not match the tastes of our clients who look for more standard clothes," explained Pachla. He went on to say that another reason for deteriorating sales was growing competition. "It will not change our development plans, but we will have to reconsider our next collections. We will still stress fashionable products, but at the same time we will sell more standard clothes. The image of the brand will change, but not as rapidly as it has done recently," said LPP president Marek Piechocki. (Puls Biznesu, p. 12) M.M.