LPP of Poland cuts 2025/26 sales outlook, blames the unusually cold spring, and brandedquity

The largest fashion retailer Poland LPP has reported a net profit of the first better quarter than expected on Thursday, but reduced the sales forecasts for the financial year of 2025/26, blaming the slow market conditions due to a disturbing season.LPP, owner of the reserved fashion chain and other brands located mainly in central Europe, said that net profit for the first quarter is equal to 334 million Zlotys ($ 90.49 million), above the forecast of analysts of 246 million zloties.

However, LPP reduced the revenue forecasts for the financial year of 2025/26 to about 23-24 billion zloties from 25-26 billion zloties previously expected, stating that the exceptionally cold time in May had reduced the demand for spring summer collections.

“The beginning of this year of the second quarter was recorded for us as a fourth influenced by time, a historically cold May,” said the financial director Marcin Bojko during a teleconference. “At that time, our stores offered the summer collection. The customers of purchasing customers for this type of clothing were low because of the cold and low temperatures (…) however in June we are already witnessing a significant improvement,” he added.

A slow spring also had an impact on other European fashion retailers. The sales of H&M grew by 1% in March compared to 4% in the same period of the previous year.

Inditex, owner of Zara, reported weaker results than expected Wednesday as repercussions and unfavorable weather conditions weighed on sales throughout the sector, complicating the efforts of the fashion dealer to maintain strong growth.

Expansion plans

Starting from April 30, LPP had 2,959 stores, 1,611 of which are SinSay Stores, its budget brand that aims to compete with fast fashion retailers like Bershka of Inditex.

In 2025, LPP plans to expand its commercial space of about 25-30%, focusing mainly on the development of the SinSay brand and aiming at around 1,100 stores.

Based on its three -year strategy announced in April, LPP aims to double the annual revenues of 40 billion zloties by 2027, with SinSay representing 75% of the group’s total sales.

The company also plans to expand its network of shops at about 7,500 points of sale by the end of 2027.

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