LPP profit set to rise on record margins despite cold
LPP expects high profit growth as record margins offset a dip in quarterly sales. Cold weather hit April demand but May sales have already rebounded sharply.
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LPP SA reported a 10% rise in preliminary revenue for the first quarter, despite a 2.8% drop in group-wide like-for-like sales. Unseasonably cold weather in Poland during April dragged down demand for spring collections, particularly for the budget brand Sinsay. Investors are weighing record gross margins against negative sales growth as the retailer aggressively expands its international store footprint.
