- LPP’s first-quarter net income reached 334 million zloty, exceeding estimates of 285.8 million zloty, with a 21% year-on-year increase.
- EBIT (Earnings Before Interest and Taxes) came in at 464 million zloty, surpassing estimates of 361.3 million zloty, a 13% increase from the previous year.
- EBITDA was 938.0 million zloty, above the estimated 883.8 million zloty.
- Company sales amounted to 4.95 billion zloty, with a 15% year-on-year growth, closely aligning with the estimate of 4.96 billion zloty.
- Gross margin improved to 54%, compared to last year’s 52.1%, and surpassed the 53.4% estimate.
- Online sales saw a significant rise, reaching 1.45 billion zloty, which is a 25% year-on-year increase.
- LPP forecasts full-year sales to be around 23 to 24 billion zloty.
- The company plans to expand floor space by approximately 25-30%, focusing mainly on the Sinsay brand.
- Capital expenditure for the year is projected at 3.1 billion zloty.
- LPP aims to maintain a safe level of indebtedness.
- Sales from May 1st to June 10th rose 13% year-on-year, despite a slow start to the second quarter due to low temperatures across Poland and Europe.
- The full-year gross margin is expected to be between 53% and 54%.
- Analyst recommendations include 12 buys, 2 holds, and 2 sells.
A look at LPP SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
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
Based on the Smartkarma Smart Scores, LPP SA has a promising long-term outlook. With a high Growth score of 4 and good Resilience score of 3, the company seems well-positioned to expand over time and withstand potential economic challenges. Additionally, a Dividend score of 3 implies a stable payout to investors. However, LPP SA has room for improvement in terms of Value and Momentum, with scores of 2 on both factors.
LPP SA, a major player in the design and distribution of clothing in Central and Eastern Europe, has a solid foundation for growth. The company focuses on designing and branding its products while outsourcing production to Chinese manufacturers. With a balanced score across different factors, LPP SA is expected to capitalize on its growth opportunities while providing steady dividends to its shareholders.
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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