Polish clothing and footwear producers have had reason to smile recently. With retail sales continuing to climb, their tills have been full. Two of the major players in the clothing and footwear industry, LPP and CCC, have posted impressive results for the first eight months of 2013.
Clothing retailers are announcing good results
WSE-listed clothing retailer LPP saw its consolidated revenue for the first eight months of 2013 at zł.2.46 billion, which is a 25 percent increase compared to the same period last year. In August alone, its sales revenue stood at zł.351 million, a 31 percent bump year-on-year. The group’s sales margin is estimated at 51 percent.
Meanwhile, WSE-listed footwear retailer CCC also noted an increase in its consolidated revenues, which amounted to zł.856.9 million for the January-August period, 14.5 percent more than in the first eight months of 2012. Its August sales figure came in at nearly zł.100 million, 14.4 percent more than last year.
The results are in line with recent overall retail trade figures in Poland, which saw a 4.3 percent increase in July, following an increase in June of 1.8 percent. By contrast, retail sales in the euro zone fell by 1.3 percent in July y/y.
In late August the footwear producer announced that it plans to spend about zł.100 million on new stores in 2014, expanding the firm’s total retail area by some 90,000 sqm in addition to the 59,000 sqm planned for 2013. It will also build a new logistics center for zł.60 million, the company’s CEO Piotr Nowjalis said at a press conference.
Source: Central Statistical Office
The CCC Group is one of the biggest footwear retailers and producers in Poland. It also has a significant presence abroad, with its network including stores in the Czech Republic, Slovakia, Hungary, Russia, Latvia, Romania, Kazakhstan and Ukraine. This year the company has moved into four new markets: Austria, Slovenia, Croatia and Turkey. In Q4 2013 it will also open its first store in Germany. In 2014 CCC plans to expand further in Western Europe, possibly in the UK, Italy, the Benelux or Scandinavia.
Meanwhile, Polish clothing retailer LPP announced in late August that it is working on franchise agreements to establish a sales network in the Middle East. The first market it will venture into will be the United Arab Emirates, said Dariusz Pachla, LPP’s deputy CEO. “The clothing market there is estimated at $15 billion compared with about half of that value in Poland,” he explained.
LPP’s retail network comprises 1,179 stores and its brands include Reserved, Cropp, House, Mohito and Sinsay.
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