- LPP’s FY EBITDA was 4.10 billion zloty, a 12% increase year-over-year but missed the estimate of 4.22 billion zloty.
- Net income was 1.75 billion zloty, an increase of 8.7% y/y, below the estimate of 1.91 billion zloty.
- EBIT reached 2.42 billion zloty, a 5.8% y/y increase, falling short of the 2.65 billion zloty estimate.
- Sales totaled 20.19 billion zloty, up 16% y/y, which was slightly below the 20.47 billion zloty estimate.
- The gross margin was reported at 53.1%, surpassing the estimate of 52.9%.
- Online sales grew by 26% y/y, amounting to 5.40 billion zloty.
- LPP reaffirmed its FY capital expenditure plans at 3.5 billion zloty.
- The company plans to open 1,500 Sinsay stores within the year.
- For 2025, LPP expects a gross margin of 53%-54%, an EBITDA margin of 19%-20%, and a net margin of 7%-8%.
- Sales are anticipated to reach between 25 billion and 26 billion zloty in 2025.
- EBITDA margin for 2026-2027 is projected at 18%-19%, with a gross margin of 51%-52% and stable net margins year-over-year.
- The compound annual growth rate (CAGR) for traditional stores during 2026-2027 is expected to be 25%-30%, and 20%-25% for online sales.
- Sales in the first quarter have increased by approximately 23% y/y, with like-for-like sales up by 1.4%.
- The spring/summer collection has received a positive market reception.
- The stock has 12 buy ratings, 2 hold ratings, and 2 sell ratings.
A look at LPP SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assigned LPP SA with a range of Smart Scores to evaluate its long-term prospects. With a strong momentum score of 5, LPP SA seems to be heading in a positive direction, indicating a promising outlook for the company’s future growth. Additionally, a growth score of 4 suggests that the company has potential for expansion and increasing revenue. While the value and resilience scores are moderate at 2, the dividend score of 3 indicates a stable dividend payout for investors. Overall, the combination of these scores paints a picture of a company with solid growth potential and strong market momentum.
LPP S.A., a Central and Eastern European clothing design and distribution company, has received noteworthy scores across various factors as per Smartkarma Smart Scores analysis. With a focus on product mix design, branding, and distribution channel development, LPP outsources its production to manufacturers in China. The company’s favorable growth and momentum scores of 4 and 5, respectively, suggest a positive long-term outlook for investors. Although value and resilience scores are more modest at 2, the dividend score of 3 signifies a steady dividend payout. These combined scores indicate a company poised for growth and resilience in the competitive market landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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