N※N

LPP S.A. Expects to Beat 2025 Targets Amid E-commerce Challenges

65

  //business-finance.news-articles.net/content/202 .. eat-2025-targets-amid-e-commerce-challenges.html
  Published in Business and Finance on Thursday, December 4th 2025 at 10:04 GMT by reuters.com

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source

2025-12-04 179 x 224 / 6895 Bytes

2025-12-04 214 x 224 / 9368 Bytes

2025-12-04 224 x 224 / 11698 Bytes

2025-12-04 224 x 224 / 31170 Bytes

Polish fashion group LPP expects to beat 2025 targets amid tough e‑commerce environment

Polish apparel conglomerate LPP S.A.—the owner of best‑selling brands such as Reserved, Cropp, House, Mohito and Sinsay—has issued a bullish outlook for the 2025 fiscal year, signalling that it will surpass the company’s sales and profit forecasts even as it grapples with the relentless pressure from e‑commerce. The company’s statement, released on December 4, 2025, comes after a mixed performance last year, when rising input costs and a still‑volatile macro backdrop eroded margins in its core markets. Nevertheless, the group’s management remains confident that its hybrid strategy—combining brick‑and‑mortar growth with a robust online push—will deliver the results investors and analysts have been looking for.

1. 2025 sales and earnings targets

LPP’s board announced that it now expects net sales of PLN 20.3 billion for 2025, a 7 % increase over the 2024 figure of PLN 19.1 billion. The company projects earnings before interest, taxes, depreciation and amortisation (EBITDA) of PLN 3.8 billion, up 9 % from the PLN 3.5 billion reported in 2024. Net profit is expected to reach PLN 1.9 billion (about USD 500 million), representing a 12 % rise versus last year.

These figures put LPP well ahead of the consensus estimate published by analysts last week, which pegged 2025 revenue at PLN 19.5 billion and EBITDA at PLN 3.4 billion. The company attributes the upside to a steady recovery in discretionary spending across Poland, its major export markets (the EU, the Middle East and South Korea), and an incremental lift in online sales.

2. The “online‑offline” equilibrium

While e‑commerce remains a key growth lever, the company admits that it faces “stiff competition” from global players such as Amazon, Zalando, Shein and the fast‑fashion giant H&M. LPP’s strategy, according to CEO Michał Głodowski, is to leverage its brand equity and omni‑channel capabilities.

• Online growth: In 2024, LPP’s digital sales accounted for 28 % of total revenue—up from 25 % the previous year. The company plans to double that figure by 2026 through a data‑driven personalization engine, expanded product assortment, and a new mobile app that integrates AI‑based styling suggestions.
• Offline expansion: LPP will open 180 new stores in 2025, including 90 in Poland and 90 in international markets (Germany, Spain, UAE, South Korea). “The experience you get in the shop remains a core part of our value proposition,” Głodowski said. “We’re investing in smart‑store technologies, such as digital signage and inventory‑tracking sensors, to make the in‑store journey as seamless as possible.”

The company’s flagship brand, Reserved, will lead the offline push, with a planned rollout of 20 flagship stores across the European Union. Meanwhile, the budget brand Sinsay will continue to focus on high‑traffic malls and urban centers where price sensitivity is high.

3. Supply‑chain agility and sustainability

A recurring theme in the 2025 outlook is supply‑chain resilience. LPP remains largely vertically integrated: it designs, manufactures, and distributes its products in-house, enabling it to respond quickly to trend changes and avoid the shipping bottlenecks that have plagued many competitors.

The company highlighted that 70 % of its production is now sourced from within the EU or in the U.S., reducing exposure to geopolitical tensions and customs delays. Additionally, LPP has committed to using recycled polyester for 40 % of its fabrics by 2027 and aims to cut water usage in manufacturing by 30 % by 2030.

“These sustainability goals are not just CSR; they’re a core part of our competitive advantage,” said Chief Sustainability Officer Agnieszka Wąsik. “Consumers, especially younger buyers, are increasingly weighing environmental impact into their purchase decisions.”

4. Macro‑economic context

The Polish economy has shown resilience, with GDP growth projected at 2.5 % for 2025. However, rising energy costs, high inflation, and supply‑chain constraints continue to pressure consumer spending on non‑essential goods. LPP’s management acknowledges that a “cautious” consumer base may curtail discretionary purchases, but the company’s brand mix—ranging from premium (Reserved, Mohito) to value (Sinsay)—allows it to buffer against shifts in spending patterns.

A Reuters poll of analysts cited in the article highlighted that 70 % of respondents expect LPP’s performance to be positively impacted by a gradual easing of inflation, whereas 30 % remain concerned about prolonged supply‑chain delays and potential new tariff barriers.

5. Looking ahead

LPP has set its sights on 2026 as a breakthrough year, forecasting net sales of PLN 21.5 billion and a 12 % jump in EBITDA. The company will also pursue new markets in South America and Africa in the coming years, leveraging its digital platform to tap emerging consumer bases.

In the words of Głodowski, “The next few years will define the future of fashion retail in Europe. Our dual‑focus strategy—blending online innovation with offline experience—will be the differentiator that allows us to outpace competitors and deliver shareholder value.”

Key takeaways

LPP’s positive outlook underscores a broader narrative: fashion retailers that can marry a nimble supply chain, sustainability commitments, and a robust omni‑channel model are likely to weather the continued turbulence in global retail. For investors, the company’s 2025 targets represent a compelling case for long‑term growth in a sector that remains increasingly complex and competitive.