Stock value loss for Gdańsk based clothing company

LPP, the Gdańsk-based clothing company renown for its Reserved brand, lost over 20% in stock value in September. "It is hard to estimate where the boundary of Reserved's expansion is, as the company is rapidly developing and increasing sales. Due to this there might be large discrepancies in forecasting its future value," said Radosław Solan, analyst with BDM PKO BP. Later this year LPP is planning to add 14 new stores to its network of 53 outlets. However, the growth potential of Reserved is slowly running out. "By the end of 2004, there should be 100 stores operating under the Reserved brand name, which means that the retail network will be virtually completed. Due to this, we will launch a new brand in spring next year, which will help keep dynamic growth of sales and profits," said Dariusz Pachla, deputy president of LPP. The company would however not reveal details before concluding its registration procedures. (Puls Biznesu, p. 11) M.M.