LPP Company Overview and History

LPP is a Polish retail company that has been in business for over 30 years. Founded in 1996 by Marek Piechocki, the company has grown significantly over the years.

LPP's first store was opened in Gdańsk, Poland, and it was called H&M's competitor store, Reserved. The store was a huge success, and it paved the way for the company's future growth.

LPP's business model focuses on creating multiple clothing brands under one umbrella, which allows for efficient operations and cost savings. This approach has enabled the company to expand its reach and offer a wide range of products to its customers.

Today, LPP operates six clothing brands: Reserved, Mohito, Cropp, House, Sinsay, and FSO.

LPP's history began in 1991 when Marek Piechocki and Jerzy Lubianiec started their business activities in the clothing industry in Gdańsk.

The company initially operated under the name PH Mistral s.c. and was later transformed into LPP, an abbreviation of the founders' surnames and partners.

In 1997, LPP opened its office in Shanghai, marking the beginning of its international expansion.

The late 1990s saw the creation of LPP's first brand, Reserved, and the establishment of its own retail network.

In 1991, Marek Piechocki and Jerzy Lubianiec started their business activities in the clothing industry in Gdańsk.

The company initially operating under the name of PH Mistral s.c. was transformed into LPP after four years.

LPP is an abbreviation of the surnames of its founders - Lubianiec, Piechocki, and Partners.

In 1997, the office in Shanghai was officially opened.

The owners of LPP decided to create their first brand - Reserved - and build their own retail network in the late 1990s.

The first store of the brand Reserved was opened in 1998.

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In 2001, LPP made its début on the Warsaw Stock Exchange, marking the beginning of its expansion into the market.

The Reserved brand quickly expanded to Central and Eastern Europe, with stores opening in Russia, Estonia, the Czech Republic, Latvia, and Hungary in 2002.

In 2003, LPP continued its expansion, opening stores in Lithuania, Ukraine, and Slovakia.

A Cropp store was opened in Poland in 2004, further diversifying the company's portfolio.

The brand was launched in Estonia, Slovakia, and Latvia in 2005, and in Lithuania, Russia, and the Czech Republic in 2006.

LPP's expansion into Romania and Bulgaria occurred between 2007 and 2008.

In 2008, LPP opened its Distribution Centre in Pruszcz Gdański, a significant milestone in its logistics operations.

The company acquired Artman, a Cracow-based company owner of House and Mohito brands, in 2008, becoming the largest clothing company in Poland.

LPP's portfolio was expanded by the Sinsay brand in 2013.

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LPP's global sourcing network is based on three distribution centres, dedicated to servicing over 2,000 stores worldwide, as well as Fulfillment Centres, supporting the company's online sales.

The company's first distribution centre in Pruszcz Gdański was launched in 2008 and has since undergone modernisation and several expansions. In 2017, LPP began shipping from its newly opened FC in Stryków near Łódź.

LPP does not operate its own factories, instead, clothing is produced mainly in Asia, but also in Poland and other European countries, including Italy, Portugal, Romania, Bulgaria, and Turkey. The company has had an office in Shanghai since 1997 and in Dhaka since 2015.

LPP has been working to improve safety and working conditions in the clothing industry in Asia since 2013, implementing a Code of Conduct for all suppliers and joining the ACCORD Agreement in 2013.

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LPP, a Polish clothing company, owns five distinct brands catering to different consumer groups.

Reserved is LPP's flagship brand, offering women's, men's, and children's fashion, along with accessories and footwear. It has 365 stores in 2024 and is located in various countries beyond Poland.

The brand's expansion includes Reserved Home, introduced in 2024, which specialized in home textiles and decorations. Unfortunately, it was closed the same year due to poor sales.

House is a brand for teenagers and young adults, with physical stores in 19 European countries and online sales available in 22 countries.

Cropp is a streetwear brand inspired by music, art, and sports, offering clothing, footwear, and accessories for both men and women. It has 374 stores in Europe, located in 18 countries.

Mohito is a brand aimed at women, offering clothing, accessories, and perfumes. It has physical stores in 22 countries and an additional online store in Germany and Spain.

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Sinsay is a brand offering clothing for women, men, and children, as well as pet products, home décor, textiles, and cosmetics. It has 1230 stores in 2024 and is available in many countries.

Tallinder was a premium brand that offered men's and women's clothing, accessories, and footwear. Unfortunately, all of its stores have been closed since 2017 due to poor sales.

Here's a list of LPP's brands, including their year of creation, number of stores in 2024, and target consumers:

LPP's global sourcing network is based on three distribution centres, dedicated to servicing over 2,000 stores worldwide.

These distribution centres are managed by LPP Logistics, a logistics operator belonging to the LPP Group.

The company's first distribution centre in Pruszcz Gdański was launched in 2008 and has undergone modernisation and several expansions.

In 2017, LPP began shipping from its newly opened Fulfillment Centre in Stryków near Łódź.

The rapid growth of e-commerce led to the opening of another warehouse to handle online orders in Romania in 2019.

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A year later, the company signed a contract to lease warehouse space in Slovakia.

Further demand for logistics facilities resulted in the launch of further Fulfillment Centres in Pruszcz Gdański and Podkarpacie in 2022.

The Group's second distribution centre, Brześć Kujawski DC, became operational in the same period.

At the end of 2022, the total warehouse space of all facilities managed by LPP Logistics amounted to over 400,000 square metres.

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LPP doesn't operate its own factories, instead, it relies on external partners to produce its clothing. The majority of production takes place in Asia, with additional production happening in Poland and other European countries like Italy, Portugal, Romania, Bulgaria, and Turkey.

The company has had an office in Shanghai since 1997, and since 2015, it also has an office in Dhaka, the capital of Bangladesh. This presence in Asia allows LPP to oversee production and ensure that its standards are met.

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Since 2013, LPP has been working to improve safety and working conditions in the clothing industry in Asia. This effort involves implementing a Code of Conduct for all suppliers, which includes requirements for wage policy, prohibition of child labor, and occupational health and safety principles.

The Code of Conduct was introduced in 2014 and is enforced by LPP's own inspectors, as well as by an international auditor, SGS. This increased supervision helps to ensure that suppliers in Bangladesh comply with the Code of Conduct.

Thanks to the ACCORD Agreement, over 1600 Asian production plants and sewing plants were inspected, with recovery programs implemented in more than 90% of the factories by the end of 2017. This agreement also led to the conduct of 882 training courses, with nearly 1.2 million employees participating.

In 2022, LPP joined amfori BSCI, a global initiator of sustainable production and trade activities. This membership will enable LPP to better verify and monitor ethical, labor, and environmental issues in collaborating factories.

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LPP SA has been listed on the Warsaw Stock Exchange since 2001. At the time of its début, the price per share was PLN 48.

In 2014, LPP was included in the WIG20 index of the 20 largest companies listed on the Warsaw Stock Exchange.

LPP was included in the MSCI index in the same year as the WIG20 index inclusion.

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LPP's financials are impressive, with the company ranking third among the largest CIT payers in Poland in the commercial sector in 2018. As a major contributor to the Polish budget, LPP has consistently paid significant amounts to the state budget for taxes and other tributes.

The company's revenue has been steadily increasing over the years, reaching PLN 12 billion in 2021. In 2019, LPP's revenue was PLN 8.2 billion, a significant jump from the previous year.

A closer look at LPP's financials reveals a consistent increase in income, with PLN 1.959 billion in income in 2021. This is a substantial increase from 2020, when the company reported PLN 219 million in income.

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LPP's corporate income tax (CIT) payments have also been on the rise, with PLN 355.3 million paid in 2021. This is a significant increase from 2020, when the company paid PLN 41 million in CIT.

Here's a breakdown of LPP's CIT payments over the years:

In 2022, LPP's contribution to the Polish budget was nearly 1.7 billion PLN, a significant addition to the state budget.

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LPP is a Polish company that operates in the retail industry, specifically in the area of fashion and footwear. They have a strong presence in Europe and are known for their popular brands like Cropp, House, and Reserved.

Their fashion brands are sold in over 2,000 stores across 15 countries. They also have a strong e-commerce platform that allows customers to shop online.

LPP has been successful in creating a strong brand identity for their companies, with each brand catering to a specific target market. Reserved is a popular brand among young adults, while Cropp is known for its high-quality denim.

Their brands are sold in stores and online, making it easy for customers to shop from anywhere.

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LPP's management team is led by Marek Leszek Piechocki, the 64-year-old Chief Executive Officer since 1990.

The company's Director of Finance and Chief Financial Officer is Marcin Bojko, who is 54 years old and has been in the role since May 31, 2024.

The management team also includes Piotr Pawel Piechocki, a 38-year-old Director and Board Member since December 31, 2016, and Milosz Wisniewski, the 61-year-old Chairman with no specific start date mentioned.

Here is a brief overview of LPP's management team:

Meet the leaders at LPP SA, a company with a strong management team. Marek Leszek Piechocki is the CEO, a position he's held since 1990.

The CEO is supported by other key managers, including Marcin Bojko, who serves as Director of Finance/CFO since May 31, 2024.

Piotr Pawel Piechocki is a Director/Board Member, having joined the company on December 31, 2016. He's one of the younger members of the team, at just 38 years old.

Other notable directors include Milosz Wisniewski, the Chairman, who is 61 years young. Grzegorz Maria Slupski is also a Director/Board Member, having joined on June 28, 2021.

Here's a quick rundown of the top managers and directors at LPP SA:

Management involves a range of skills and qualities that help individuals lead and motivate teams effectively.

Effective communication is a key attribute of successful managers, as seen in the "Leadership" section, where it was mentioned that leaders should be able to articulate their vision and goals clearly.

Good decision-making skills are also crucial in management, as discussed in the "Problem-Solving" section, where it was noted that managers should be able to analyze problems and make informed decisions.

Adaptability and flexibility are essential attributes for managers, as highlighted in the "Change Management" section, where it was mentioned that managers should be able to adjust to changing circumstances and priorities.

Empathy and emotional intelligence are also important attributes for managers, as seen in the "Team Management" section, where it was noted that managers should be able to understand and manage the emotions of their team members.

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Managers should also be able to prioritize tasks and manage their time effectively, as discussed in the "Time Management" section, where it was mentioned that managers should be able to focus on high-priority tasks and delegate tasks to team members when necessary.

Trust and credibility are also essential attributes for managers, as highlighted in the "Building Trust" section, where it was noted that managers should be able to build trust with their team members and stakeholders.

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LPP, the parent company of popular clothing brands like Reserved, Mohito, and Cropp, has a strong focus on regulatory and compliance.

The company's headquarters are located in Poland, where it is subject to the Polish Commercial Code. This code governs various aspects of business operations, including accounting, auditing, and corporate governance.

LPP's commitment to compliance is evident in its adherence to the EU's General Data Protection Regulation (GDPR), which sets strict standards for data protection and privacy.

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LPP, the parent company of H&M in Poland, has a significant tax contribution to the Polish state budget.

According to the Ministry of Finance, LPP was ranked third among the largest CIT payers in Poland in the commercial sector in 2018.

The company's tax payments have been steadily increasing over the years.

Since 2016, LPP has paid a total of PLN 7.6 bn to the state budget for taxes and other tributes.

This amount includes its contribution to the Polish budget in 2022 alone, which was nearly 1.7 bn.

Here's a breakdown of LPP's tax payments from 2016 to 2021:

LPP's tax payments demonstrate its commitment to contributing to the Polish state budget.

LPP has been reporting on its sustainability activities since 2017, making its reports available at https://www.lppsa.com/zrownowazony-rozwoj/raport-roczny. This transparency is a great step towards accountability and responsible business practices.

The company has set a goal of gradually reducing its carbon footprint, which is a crucial aspect of its sustainability-oriented activities. Calculating CO2 emissions independently in 2021, taking into account all three scopes and categories defined in the GHG Protocol, is a significant step towards achieving this goal.

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In 2021, LPP adapted its organisational structure by creating the position of Director of Purchasing and ESG. This new role is responsible for planning and coordinating the implementation of responsible business standards within the LPP Group.

The Director of Purchasing and ESG also develops and implements guidelines in all three ESG pillars: environmental, social, and corporate governance. This comprehensive approach ensures that LPP's sustainability efforts are well-rounded and effective.

Here are some key characteristics of companies like LPP:

LPP suspended all its business activities in Russia in March 2022, joining other global companies in response to the Russian invasion of Ukraine.

This move came despite Russia being the company's second-largest market, with approximately 500 stores and a distribution centre.

LPP sold its Russian subsidiary to a Chinese consortium in April 2022, seemingly ending its 20-year presence in Russia.

However, an investigation revealed that LPP had not actually sold its Russian subsidiary, but instead continued to operate in Russia using front entities.

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This move may have put LPP in breach of loan agreements with PKO Bank Polski, Poland's largest bank, which does not finance entities operating in Russia or with Russian contractors.

As a result, LPP's stock price plummeted by around 35% after the report's publication.

The company responded by accusing Hindenburg Research of spreading disinformation, which they claimed was a deliberate attempt to bring down the company's stock price.