LPP fashion is seeing the first results of the operational initiatives implemented at its Sinsay chain, with an improvement in LFL sales for the brand in the third quarter, CFO Marcin Bojko said during a conference call.
"The initiatives are working. We still have a lot of work ahead of us. (...) we will countinue to optimise our ordering process and the display of collections in stores, and we will also be working on the Home line. However, in the third quarter, we can see that things are really holding up well. LFL is above the line, and if we exclude August, when we focused more on margins (...), these LFL growth rates are already at a really good level," Bojko said.
"We still have the second half of the third quarter ahead of us, but in September we are already seeing high single-digit levels. There are days when LFL is even at 10–12 percent," he added.
In the second quarter, Sinsay's LFL sales declined 1.2 percent, compared with a 6.8 percent decline in the first quarter.
Operational initiatives were introduced at Sinsay at the beginning of the year, with the first results becoming visible in the second quarter. The brand adopted a ‘back to fashion’ formula and a ‘smart value’ model. At the same time, Sinsay enhanced the in-store shopping experience. The changes also extended to the home section in around 10 pct of stores in Poland. Online sales were supported by an increase in the performance marketing budget.
In August, LPP launched the Sinsay marketplace in Poland. The company's goals for 2027 include having over 100,000 products on the platform, entering its first foreign market, and achieving PLN 40–50 million in EBITDA, according to the company's presentation.
LPP does not see any delays in deliveries due to the situation in the Red Sea, CFO Marcin Bójko said. He added that the company will begin negotiations on freight rates for next year in November.
pel/
