Lpp Sa Uns/Adr (LPPSY) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome, everybody. My name is Magda Kopaczewska, and I represent Investors Relations Unit in LPP. Marcin Bujkos, CFO and board member of LPP, is here with me tonight. And together we would like to invite you to the perspective. So all in all, we are satisfied that this dynamics was positive, particularly in the reserved brand. These were two-digit like-for-likes. In terms of e-commerce sales, we generated $1.4 billion in the second quarter, 16% of growth. In currents, constant currents, of course, we were planning 22. But in this channel, again, this difficult market show its face with lower traffic. And in the net, we decided. to optimize the performance marketing costs so the purchases of likes or clicks in the net so maybe we did not 0.6% percentage point, that's the greatest share of the Sensei brand in the entirety of our offer, and the remaining context is active managing of gross margin. What does that mean? Those of us who are with us regularly might remember that in June, a quarter ago, we announced that the plan for this year was 1,500 openings, but we bet on quality, we don't want to dilute profitability, and we parked the so-called mini concept for further analysis. That translates into the reduction of the number of openings. But what it involves from the operational point of view, is that in 2025 we entered with a greater stock for the new openings. Greater stock, so that means that we had greater volume of apparel to be sold and in order not to stay with this stock, In the Sensei brand, our sales team actively managed this balance between the volume sold and the percentage margin. We've been operating at a lower margin recently, but at the end of the day, 54% stable level, so much higher than still back in 2023, somewhat lower than last year. But we a...