LPP SA "Another growth de-risking & lower guidance" (Buy) Potyra

研报英文原文证据摘录

LPP SA "Another growth de-risking & lower guidance" (Buy) Potyra

"UPSIDE/DOWNSIDELPP SA SPECTRUM" section. UBS Research

PT down to PLN 24,500; Buy rating

1Q26 results review: weak sales & very high margin

LPP 1Q26 results came in slightly above consensus expectations. Sales (pre-

released) increased by 10% yoy to PLN 5.5bn with 15% growth in stores and flat online

sales. Gross margin continued its strong run, increasing to a multiyear high level of

58.5% (+450bps yoy) as the management cited benign supply conditions and lower

markdowns approach due to good inventory control. EBITDA increased 36% yoy to PLN

1,282m (23.4% margin vs 19.0% last year) and came in 2% above PAP consensus;

EBIT increased by 47% yoy and came in 2% above consensus while net profit increased

by 42% yoy and came in 8% above consensus.

Figure 1: 1Q26 results review

1Q26 resul

ts review

Source: LPP, PAP, UBS estimates

Current trading: solid start with sales growing

20%, but the management flags June as likely to

be softer

During 1 May - 9 June sales grew 20% yoy in constant FX with +4% LFLs as May

benefitted from favourable weather conditions and easy comps. At the same time the

management has noted that June saw some slowdown as both the weather turned

negative while the base is materially more demanding. We expect the LPP to deliver

16% revenue growth in 2Q.

FY2026 guidance cut on more measured store

opening plans

LPP has revised its FY26 and FY27 store opening forecast to approximately 750 units

annually, down from the prior estimate of ~950 units per year. This adjustment reflects

management's view that a more cautious expansion strategy is appropriate given rising

market saturation in Poland and CEE, challenging consumer conditions in SEE, and

logistical constraints in Central Asia.