LPP expects 52-53% sales growth this year

WSE-listed fashion retailer LPP is committed to meet its 2017 targets. “We maintain a target of achieving 52-53 percent gross margin on sales and retail space growth of 11 percent,” company's CFO Przemysław Lutkiewicz said. So far this year, the company increased its sales by 16 percent y/y (to PLN 2.45 billion), while retail space increased by 7 percent y/y (to 928,000 sqm). Group capex for this year is estimated at PLN 430 million. “The second quarter will definitely be better y/y in terms of results thanks to a better collection and higher margins," Lutkiewicz explained. Last year's results were affected by poor sales, which forced LPP to start the sales season in May. This year, the sales began this week, and run till August. LPP is a Polish clothing retailer, which manages brands like Reserved, Cropp, House, Mohito, SiNSAY and Tallinder. It has been listed on the WSE since 2001.