LPP to double its revenue by 2027. The driving force behind the Group’s development will be the Sinsay brand

- LPP announces a new business strategy which focuses on accelerating the development of Sinsay. The brand will become the driving force of the Group and is expected to account for 75% of its revenue by 2027.
- By expanding its physical stores network to around 7,500 stores and increasing e-commerce sales to PLN 10bn, LPP intends to scale up its business and double its revenue to PLN 40bn within three years.
- LPP’s strategy is based on leveraging the competitive advantage of the Sinsay brand, with the strongest omnichannel platform on the market, which integrates an extensive sales network and a growing online channel, including the industry’s most popular mobile application and loyalty programme.
- In its new strategy, LPP focuses on smaller towns and responds to current customer expectations by creating a unique market category – Design&Value.
- Sinsay is the only brand on the market that combines the key features of modern commerce: proximity of well-designed stores, a strong online presence, a wide range of branded products, and affordable prices.
- Sinsay’s scalability and low market saturation open up the potential for the Company to reach 300mn customers in 27 target markets.
- By the end of 2027, Sinsay’s physical stores network will grow to approximately 6,000 stores. LPP has already secured over 1,100 new locations, which proves that the Company is well prepared for the rapid expansion.
- LPP bases its ambitious business plans, among others, on the results of 2024, which ended with a balance of over PLN 20bn in revenue (+20%. YoY growth in fixed currencies). The Group’s investments in this period exceeded PLN 1.8bn, the largest share of which was spent on expanding the sales network (+660 new stores).
Over 20bn in revenue in 2024, including record results in e-commerce
In its 2024 summary, LPP once again proved that ambitious development plans can go hand in hand with good financial results. As planned, the company opened over 660 new stores last year, and the chain’s floorspace increased by 23% YoY, with the Sinsay brand recording the largest increase in the number of stores. In line with earlier announcements, the company achieved revenues in excess of PLN 20bn (i.e. 20% YoY increase in fixed currencies and 16% more in reported terms) with record e-commerce sales dynamics of 31% YoY in fixed currencies and 26% in reported terms.
The Group’s operating profit exceeded PLN 2.4 bn, with a simultaneous increase in capital expenditure to over PLN 1.8bn. The main focus was on developing the sales network and strengthening the logistics and technological base, hence preparing the Company for a new chapter in its business strategy.
SUMMARY 2024
Indicator | 2024 | YoY change |
---|---|---|
Revenues (reported) | PLN 20bn | 20% (cc) |
Operating profit (core business) | PLN 2.4bn | 19% |
Total number of stores | 2 847 | + 663 (gross) |
Business model tested and ready for rapid expansion
In its new strategy, LPP is focusing on accelerating the development of Sinsay, which will account for 75% of the Group’s revenues in 2027. Sinsay’s unique concept gives the Company the opportunity to quickly scale up its business and double its revenues to PLN 40bn.
– We have created a business concept that is unique in the market, tested in a wide variety of conditions and ready for rapid expansion. There is no other brand like Sinsay, perfectly suited to the needs of customers from smaller cities who want unlimited access to aesthetic and functional products at their fingertips. We are creating a market category unlike any other, Design&Value, which will allow us to reach up to 300 million customers in 27 markets – comments Marek Piechocki, CEO of LPP.
Ready for rapid scaling, the Sinsay concept is a combination of two business models: fashion brand and value retailer. Its uniqueness stems from the combination of four pillars of modern commerce: availability of well-designed stores, strong support for the online offer, functional and aesthetic assortment, and a customer-friendly pricing policy. Over the past few years, LPP has been testing and developing this model in practice, and as a result, Sinsay has become a phenomenon in Central and Eastern Europe.
In line with the announced business strategy, LPP plans to quadruple the physical network of Sinsay stores over the next three years. By 2027, the number of Sinsay stores will have reached around 6,000 in 27 markets, and the entire network of the LPP Group will have grown to around 7,500 stores.
Large-scale retail in smaller towns
In its strategy, LPP aims to tap into the potential of smaller towns by introducing a new quality of retail and responding to the often overlooked needs of customers who expect access to a wide range of affordable, branded products and modern forms of shopping. Analyses conducted by the Company show that the level of market saturation in the countries where Sinsay operates is currently only 15%, which creates significant opportunities for further expansion and growth in the coming years. An important element of the development strategy is also the evolution of Sinsay towards a non-garment brand. Expanding the product range beyond clothing and adapting the product range structure to the store format and local needs allows the potential of smaller towns to be utilised and sales opportunities to be increased. Non-clothing products now account for as much as 50% of Sinsay’s sales, making it the first choice store for the whole family.
– We are focusing on smaller towns and bringing a new quality to them that is changing the rules of the game for commerce. Sinsay is becoming a phenomenon, and every time we open a new store, it is already a big event that often changes the life of the local community. Our goal is for Sinsay to become the most modern and largest store of its kind, and for customers to choose it as their first port of call for non-food shopping – says Marcin Piechocki, vice-president of the management board of LPP, responsible for the development of the Sinsay brand.
A unique omnichannel approach
Sinsay’s competitive advantage also consists in its omnichannel sales platform, the strongest in the market, which seamlessly connects the online and offline worlds and ensures a consistent shopping experience. An important element of this ecosystem is the mobile application, which already has 8 million users. Sales analyses by LPP indicate that the possibility of combining the shopping paths of traditional and e-commerce stores increases not only the frequency of purchases but also the value of the shopping basket. Access to the offer, facilitated by multi-channel sales, is crucial from the perspective of smaller towns, which are the main focus of the Gdańsk-based company. The company expects the mutually reinforcing channels to double the sales within three years, with e-commerce revenues reaching PLN 10bn.
Expansion based on strong foundations
The company bases its plans on the knowledge and experience it has gained over almost three decades of developing the Reserved, Cropp, House and Mohito brands. The solutions developed constitute valuable capital, which is currently being invested in the development of the Sinsay brand. LPP also has modern technological and logistics facilities at its disposal, including advanced automated and robotic solutions that significantly increase operational efficiency. Thanks to a network of trusted suppliers and business partners, as well as operational teams responsible for investments and supply chain management, composed of several hundred people, the company has already secured over 1,100 locations for new stores, which confirms its readiness for rapid expansion. The strong financial background and good standing of the LPP Group create a solid foundation for further investments in innovation, infrastructure development and expansion into new markets, as well as for the rapid and safe growth of the Company’s value.
– Over the next three years, we intend not only to double our revenues to PLN 40bn, but above all to realise the largest commercial expansion in the history of Polish business. I am convinced that we are well prepared to accomplish this task. For many years, LPP has been building its position in the market and strengthening strategic areas. The past year, in particular, was a time of intensive preparations for us. In 2024, we generated a very solid operating profit of PLN 2.4bn, which represents a 19% increase YoY in the core business alone. We met all financial targets, paying particular attention to a safe level of debt and balance sheet discipline. – comments Marcin Bójko, vice-president of the management board of LPP for finance.
The financial forecast for the end of 2027 predicts a doubling of the company’s revenues and a twofold increase in EBITDA operating profit in comparison to 2024, all while maintaining a safe level of debt. As in previous years, the Company intends to consistently pursue a policy of sharing its profits with shareholders.
FINANCIAL FORECAST
Indicator | 2024 | 2027 |
---|---|---|
Revenues | PLN 20bn | Approx. PLN 40bn |
EBITDA (margin) | PLN 4.1bn(21%) | Approx. PLN 8bn (18-19%) |
Total number of stores | 2.847 | Approx. 7.500 |
LPP’s strategy for 2025-2027 in a nutshell:
- Ambitious plans – The Group intends to increase the sales network to approx. 7,500 stores within three years, including approx. 6,000 Sinsay stores.
- New market category Design&Value – the Sinsay brand is the only one in the market that combines the four pillars of modern commerce: availability of physical stores, a wide range of e-commerce, designer products, and reasonable prices.
- Transformation of Sinsay into a brand with products for the whole family, where non-garment products now account for as much as 50% of Sinsay’s sales.
- Commercial revolution in smaller towns – Sinsay is targeting smaller locations, where it is becoming the “store of first choice” and changing the lives of local communities.
- Financial outlook – thanks to Sinsay, LPP plans to double its revenues to PLN 40bn and double its EBITDA operating profit by the end of 2027.
- Omnichannel synergy – the brand is the only one in this segment to use complementary and mutually-reinforcing online and offline channels, which increases the frequency and value of purchases.
- Further room for growth – the possibility to reach 300 million customers in 27 markets with the Sinsay range.
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LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central Europe. For 30 years, it has been successfully designing and selling the collections and accessories in Poland and abroad. LPP manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay, whose offer is available today in stationary and online stores in 42 markets worldwide. The company has a chain of over 2800 stores with the total area of over 2.4 million m2 and distributes the products to 3 continents every year. LPP also plays an important role as it provides employment to over 54 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.