Q1 2026 Lpp SA Earnings Call Transcript
Key Points
- LPP SA (WAR:LPP) opened 121 new stores in the first quarter of 2026, with a significant focus on the Sinsay brand, aligning with their expansion strategy.
- The company reported a strong financial position with a comfortable net debt to EBITDA ratio of 1.2, allowing for continued investment in CapEx and dividends.
- LPP SA achieved a record gross margin of 58.2% in the first quarter, attributed to effective inventory management and favorable currency exchange rates.
- The company has a strategic focus on improving customer experience, including increasing budgets for store presentation and implementing self-service checkouts in 1,100 to 1,200 stores by the end of the year.
- LPP SA plans to maintain a disciplined approach to cost management, which has resulted in a 9% improvement in cost per square meter.
- The first quarter saw a challenging sales environment with a like-for-like sales decline of 2.8% for the entire group, partly due to adverse weather conditions.
- Logistics issues, including a warehouse fire in Romania, significantly impacted the online channel and overall sales dynamics.
- The Sinsay brand experienced a 7% decline in like-for-like sales, highlighting operational challenges and the need for strategic adjustments.
- E-commerce revenue remained flat year-over-year, with growth dynamics affected by reduced performance marketing expenses and logistics disruptions.
- The company revised its store opening plans, reducing the target from 950 to 750 new stores by the end of 2025, due to market absorbability and operational challenges.
Good afternoon. Monika Wszeborowska. I would like to welcome you at the LPP conference on the results of the first quarter.
With me there is Marcin Bójko, CFO; and Magdalena Kopaczewska, Investor Relations Representative, who presented the results from the first quarter. How they reflect the reality in our activity, we will talk about to you in a moment.
We would like to present to you our plans for this year. But, also, we would like to refer to our plans for the next three years regarding our development of our stationary network. During this meeting, we would like to present to you our financial goals for 2026 and 2027.
The entire meeting will end with Q&A. You can ask questions via chat that is visible on your screens. It's already active. It will be active till the end of today's conference.
After the conference, if you have any additional issues or questions, please contact our Investor Relations department at LPP.relationslpp.com or via our medialpp.com - ([email protected]).
Let's move on to
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