Polish apparel retailer LPP's FY21 sales fall 15% to PLN 7.8 bn

LPP, a Polish family-run company engaged in manufacturing of clothing and retailing, posted 14.9 per cent revenue decline to PLN 7.8 billion (Polish zloty) in its fiscal 2021 ended on January 31, 2021, compared to the revenue of PLN 9.2 billion in the previous fiscal. The group’s net loss for the year was PLN 190.1 million (FY20: profit PLN 486.0 million).

 

LPP, a Polish family-run company engaged in manufacturing of clothing and retailing, posted 14.9 per cent sales decline to PLN 7.8 billion (Polish zloty) in its fiscal 2021 ended on January 31, 2021 compared to PLN 9.2 billion in the same period previous fiscal. The group's net loss for the year was PLN 190.1 million (FY20: profit PLN 486.0 million).#

“Last year gave us a solid survival lesson. Thanks to a financial cushion and the implementation of projects responding to the market situation, we managed to get through the toughest period in our history,” Przemyslaw Lutkiewicz, vice-president of the management board at LPP, said in a press release.

 

LPP, a Polish family-run company engaged in manufacturing of clothing and retailing, posted 14.9 per cent sales decline to PLN 7.8 billion (Polish zloty) in its fiscal 2021 ended on January 31, 2021 compared to PLN 9.2 billion in the same period previous fiscal. The group's net loss for the year was PLN 190.1 million (FY20: profit PLN 486.0 million).#

“In the first half of the year, not knowing what the next day would bring, we entered a crisis mode by introducing strict cost discipline in order to maintain the company’s liquidity. That time showed us that when faced with a new reality we have to be ready for different scenarios,” Lutkiewicz said.

 

LPP, a Polish family-run company engaged in manufacturing of clothing and retailing, posted 14.9 per cent sales decline to PLN 7.8 billion (Polish zloty) in its fiscal 2021 ended on January 31, 2021 compared to PLN 9.2 billion in the same period previous fiscal. The group's net loss for the year was PLN 190.1 million (FY20: profit PLN 486.0 million).#

Gross profit on sales during FY21 fell to PLN 4.0 billion (PLN 4.9 billion), while operating profit slipped to PLN 153.0 million (PLN 879.2 million). In 2021, the LPP group’s online sales grew 106.3 per cent of PLN 2.2 billion (PLN 1.0 billion) representing 28.4 per cent of the total revenue.

 

LPP, a Polish family-run company engaged in manufacturing of clothing and retailing, posted 14.9 per cent sales decline to PLN 7.8 billion (Polish zloty) in its fiscal 2021 ended on January 31, 2021 compared to PLN 9.2 billion in the same period previous fiscal. The group's net loss for the year was PLN 190.1 million (FY20: profit PLN 486.0 million).#

“Unfortunately, the 99 per cent increase in e-commerce in the last quarter of the year did not offset the 23 per cent drop in overall sales caused by temporary lockdowns in various regions,” Lutkiewicz added. “However, we are observing sustained interest of customers in online shopping. This is visible in the double-digit dynamics of the number of visits to our brands’ websites and the triple-digit increases in the number of new and returning customers.”

 

LPP, a Polish family-run company engaged in manufacturing of clothing and retailing, posted 14.9 per cent sales decline to PLN 7.8 billion (Polish zloty) in its fiscal 2021 ended on January 31, 2021 compared to PLN 9.2 billion in the same period previous fiscal. The group's net loss for the year was PLN 190.1 million (FY20: profit PLN 486.0 million).#

Regionally, group’s sales in Poland decreased 23.1 per cent to PLN 3.3 billion (PLN 4.4 billion). Whereas sales in other European countries dropped 2.7 per cent to PLN 2.5 billion, and CIS region’s sales plunged 12.3 per cent to PLN 1.9 billion (PLN 2.2 million).

 

LPP, a Polish family-run company engaged in manufacturing of clothing and retailing, posted 14.9 per cent sales decline to PLN 7.8 billion (Polish zloty) in its fiscal 2021 ended on January 31, 2021 compared to PLN 9.2 billion in the same period previous fiscal. The group's net loss for the year was PLN 190.1 million (FY20: profit PLN 486.0 million).#

Revenue generated from group’s five brands were: Reserved PLN 3.4 billion (PLN 4.3 billion), Cropp PLN 972 million (PLN 1.3 billion), House PLN 875 million (PLN 1.1 billion), Mohito PLN 708 million (PLN 987 million), and Sinsay PLN 1.7 billion (PLN 1.3 billion).