LPP 1Q26 First Take: Operational challenges and top line guidance cut are set to trigger consensus downgrades and weigh on shares 

研报英文原文证据摘录

LPP 1Q26 First Take: Operational challenges and top line guidance cut are set to trigger consensus downgrades and weigh on shares

Elena Jouronova, CFA AC CEEMEA Equity Research

(971) 4561-2010 11 June 2026 J P M O R G A N

elena.jouronova@jpmorgan.com

profit margin improvement in 1Q26 3% is attributed to macro, FX and freight effects.

In 2Q26 so far the company was operating with a margin that is higher y/y but not at the

pace of 1Q. 3) With the regards to the consequences of the fire in Romania last year and

insurance, LPP reserved PLN 350mn last year and received two thirds of the proceeds

so far, while continuing to work with the insurance company further. 4) The guided

margin normalisation in 2027 vs. 2026 is related to the normalisation of conditions from

the exceptional 2026, supported by multiple one-off factors. 5) Store guidance

downgrade is also driven by economic challenges in certain countries and consumer

sentiment, while LPP also aims to reduce cannibalisation. Store guidance downgrade and

lower LFL expectations led to sales guidance cut for FY26, 2Q26 will be demanding in

terms of sales vs 1Q26. 6) In terms of competition, LPP continues to regards itself as

competitive in the online segment, despite the performance in 1Q26 (with 5-6% growth

wiped out by weather and the rest affected by the logistic issues), against all players

including Chinese marketplaces that gained a market share initially, but the situation

stabilised. According to LPP, it is too early to comment on any impacts from TikTok

shopping entering Poland. 7) LPP is planning to launch marketplace in the second half

of August and will provide more comments in September. 8) LPP is working on the new

dividend policy that is due to be approved in July. The management does not expect any