The stock price of LPP, the Polish fashion retailer that is one of the biggest companies listed in
LPP’s stocks rose 20.5% to PLN13,800 (€3,193) as trading closed on the
The company fiercely denied claims by
“LPP does not conduct operational or commercial activities in
"LPP will not return to
The company admitted it is supplying goods to the new owner of its Russian business under the terms of a deal obliging LPP to “deliver goods to the investor's purchasing agents … which are in no way connected to LPP and operate completely independently”.
"The share of sales made to purchasing agents is small – at [a planned] 3% in 2024 – and significantly decreases year by year. The goods are transferred at cost, and LPP currently does not profit from this in any way. This is part of the so-called transitional period, not the company's commercial activities," the company said.
LPP also said it filed a motion with a Polish prosecutor’s office about possible criminal activity against the company and Poland’s financial market.
LPP’s claims directly contradict the report by
The report, titled “Operating behind enemy lines: how fashion powerhouse LPP masked a fake
Selling LPP’s Russian business to a Chinese entity was “a façade to hide [the] truth of not selling the Russian operations”, a “senior LPP employee” told
“LPP’s Russian operations are still ‘directly controlled by LPP HQ and board’,” the report also quoted the employee.
LPP’s net profit jumped 163.4% y/y to PLN484.4mn in the fourth quarter, the company also said on
LPP sells fashion under the brands Cropp, Sinsay, House, Mohito, and Reserved
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