Cold weather hits LPP sales despite strong profit growth in first quarter

Friday 08 May 2026 - 10:00

Polish fashion group LPP, owner of brands such as Reserved and Sinsay, reported mixed first-quarter results as strong profitability was offset by weaker sales performance in its key growth segment.

The company said that its Sinsay brand, which plays a central role in its international expansion strategy, recorded a decline in like-for-like sales during the quarter. Analysts attributed the slowdown partly to unseasonably cold weather, which reduced demand for spring and summer collections across several European markets.

Despite the sales decline, LPP maintained strong financial performance indicators, supported by high gross margins and disciplined pricing strategies. The group’s overall revenue increased in constant currencies, reflecting continued expansion and resilience in other parts of its portfolio.

Sinsay’s weaker performance weighed on the group’s total like-for-like sales, while other brands within the portfolio showed modest growth. The company continues to rely on aggressive store expansion, particularly for Sinsay, which accounted for most of the new store openings during the period.

LPP’s business model focuses on rapid international growth, supported by investments in logistics, digital platforms, and supply chain efficiency. The company has expanded its presence across Central and Eastern Europe and continues to target new markets for further development.

Retail conditions improved toward the end of the reporting period, with a noticeable rebound in sales as weather conditions normalized. Early data from May also indicated stronger consumer demand, suggesting a potential recovery in seasonal apparel sales.

Industry analysts noted that while short-term weather fluctuations affected performance, LPP’s strong margins and expansion strategy could support solid operating profit growth over the full year. However, some observers highlighted that negative like-for-like sales may raise concerns about competitive pressure in the fast-fashion sector.

Overall, LPP remains focused on balancing rapid expansion with profitability, as it continues to position itself as a major player in the European fashion retail market.