Lpp-2015-Factbook
Total Page:16
File Type:pdf, Size:1020Kb
FACTBOOK 2015 GLOBAL ASPIRATIONS We are an international retail company based in Gdansk with over 20 years of experience in designing and selling clothes and accessories. We own six fashion brands: RESERVED, Cropp, House, MOHITO, SiNSAY, Tallinder. 17 countries c.1,630 stores on 3 continents EUR 1 billion c. 21,500 employees revenues annually 91 million clothing items sold annually RESERVED, SS16 02 TABLE OF CONTENTS 1. Group Overview ..............................................................................2 2. History ..............................................................................................6 3. Brands ............................................................................................8 4. E-Commerce ................................................................................32 5. Regions .........................................................................................36 6. Value Chain ..................................................................................54 7. Business Model ...........................................................................64 8. Strategy ........................................................................................80 9. Financials ......................................................................................82 10. Outlook .........................................................................................88 11. Presence on Warsaw Stock Exchange.........................................92 12. Corporate Governance and CSR .................................................96 13. Risk Factors ...............................................................................104 01 GROUP OVERVIEW Vision, mission and values inspire us in our everyday work and influence the way we function. Mission determines the role and the purpose of LPP existence, while vision defines our ambitions and sets the direction in which we are heading. Values describe the manner in which LPP employees behave, regardless of their position. Values are like a DNA code. They not only influence the way we function as an organization but also determine our approach to customers, employees, business partners and all our stakeholders. OUR MISSION OUR VISION We help our customers to Passion drives us forward, realize their dreams through making our company the top the way they look and feel. fashion retailer in the world. SINSAY, SS16 02 WE ARE: FIRE–FUELLED AMBITION–DRIVEN We are full of energy. We are We seek new challenges every passionate about our business, day and strive for excellence. our brands and our customers. We dare for more. We expect the We are proud to be part of LPP. unexpected. SUCCESS–FOCUSED TALENT–BASED We enable talents to grow. We keep developing ourselves to We appreciate the best in people. improve the results. We run the We treat others the way we want extra mile. We achieve our goals. to be treated. 03 MURMANSK NO. OF LPP STORES END OF 2015 1,785 km AND THE FURTHEST LOCATIONS FROM THE LPP HQ 26 LPP ON THE 280 19 WORLD STAGE 26 GDAŃSK A GLOBAL CLOTHING RETAILER 12 986 LPP is successfully developing on the core Polish 937 km 80 69 market and consistently expanding on foreign markets. AACHEN 61 17 Following the entry into Germany, Croatia 22 and the Middle East, at the end of 2015 10 we were present in 17 countries on 3 continents. 15 4,212 km RESERVED, Tallinder, 1 Germany, Stuttgart Warsaw, Poland 1 1 DOHA 1 04 Cropp, Hungary, Budapest House, Poland, Warsaw MOHITO, Croatia, Zagreb SiNSAY, Poland, Warsaw 7,481km VLADIVOSTOK POLAND CZECH R. SLOVAKIA HUNGARY LITHUANIA LATVIA ESTONIA RUSSIA RESERVED:.... 237 RESERVED: ......26 RESERVED: ......20 RESERVED: ......10 RESERVED: ........7 RESERVED: ........8 RESERVED: ........8 RESERVED: ......81 Cropp: .............217 Cropp: ...............22 Cropp: ...............18 Cropp: .................2 Cropp: .................7 Cropp: .................3 Cropp: .................6 Cropp: ...............70 House: ............208 House: ..............15 House: ..............15 House: ................1 House: ................5 House: ................2 House: ................4 House: ..............49 MOHITO: .........164 MOHITO: ...........12 MOHITO: .............4 MOHITO: .............3 MOHITO: .............4 MOHITO: .............5 MOHITO: .............6 MOHITO: ...........60 SiNSAY: ...........127 SiNSAY: ...............5 SiNSAY: ...............3 SiNSAY: ...............1 SiNSAY: ...............3 SiNSAY: ...............1 SiNSAY: ...............2 SiNSAY: .............18 Outlets: .............33 Outlets: ...............1 Outlets: ...............2 UKRAINE BULGARIA ROMANIA CROATIA GERMANY EGYPT QATAR KUWAIT RESERVED: ......20 RESERVED: ........5 RESERVED: ........9 RESERVED: ........2 RESERVED: ......12 RESERVED: ........1 RESERVED: ........1 RESERVED: ........1 Cropp: ...............19 Cropp: .................3 Cropp: .................3 Cropp: .................2 House: ..............14 House: ................3 House: ................1 House: ................2 MOHITO: ...........11 MOHITO: .............4 MOHITO: .............5 MOHITO: .............2 SAUDI ARABIA SiNSAY: ...............4 SiNSAY: ...............4 SiNSAY: ...............2 Outlets: ...............1 RESERVED: ........1 05 HISTORY Launch Start of of RESERVED international – first retail expansion (Russia, First Mistral Launch store opened Czech Republic, designed transformed Estonia, Hungary, of Cropp clothes into Latvia) brand 2002 2004 1994 1995 1998 1991 Creation of 2003 Mistral company by Marek Piechocki CEO 1991-1993 Further • Present in the retail international business since 1989 expansion • CEO of LPP since 2000 • The Best-Performing 2001 (Lithuania, CEO according to 1997 Ukraine, Harvard Business Slovakia) Review (2013) and Sale of goods IPO Jerzy Lubianiec imported from Asia CHAIRMAN of on the Warsaw SUPERVISORY BOARD Opening of Stock Exchange (debut at • 1991–1997 ran offices Mistral company as in Shanghai PLN 48.4 share a sole trader (LPP’s price) predecessor) • 1995–2000 CEO of LPP • Since 2000 Chairman of the Supervisory Board of LPP 06 Creation of ESOTIQ brand Launch 2005 of SiNSAY Divesture of brand Launch ESOTIQ of the modern Further brand logistics center international in Pruszcz Gdański expansion Middle East (Romania, Bulgaria) entry (Egypt, 2010/11 2013 New countries: Qatar, Kuwait, 2008 Germany, Croatia Saudi Arabia) 2008 2015 2014 2014 Launch of Tallinder brand; new country in ME: United Arab 2008 Emirates. Entry into MSCI and WIG20 indices 2016 2010 Acquisition of Artman, owner of House and MOHITO brands Payment of first dividend 07 3. BRANDS Our brands are our value and we put a lot of effort not only in creating but also in developing them. Each of our five brands stands out from the others, offering not only different types of clothes, but different prices, stores and shopping experience. MAINSTREAM UP-MARKET Comfort and Clothes for every Fast fashion brand Casual streetwear Urban fashion brand High quality clothing KEY BRAND elegance for day inspirations with broad customer brand offering also with folk and vintage for more demanding FEATURES business and and original party base. international labels. elements. customers. informal meetings. outfits. TARGET Women, men, Teenagers Teenagers Teenagers Young women. Men and women. CUSTOMERS children. (boys and girls). (boys and girls). (girls only). 2001 2008 YEAR OF LAUNCH 1998 2004 2013 1Q16 (at LPP since 4Q08) (at LPP since 4Q08) COUNTRIES/ CEE, SEE, Baltic, CEE, SEE, Baltic, CEE, SEE, Baltic, CEE, SEE, Baltic, CEE, Baltic, CIS, Expansion initiated REGIONS CIS, Germany, ME CIS CIS CIS SEE (excl. BGN) in Poland PRESENT # STORES 449 372 319 280 170 Target: 30 stores in FLOORSPACE 461.3k m2 114.5k m2 99.7k m2 94.5k m2 59.7k m2 Poland AVERAGE 1,027 m2 308 m2 313 m2 337 m2 351 m2 450 m2 STORE SIZE 08 REVENUES BY BRANDS PLN m 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Revenues (PLN m) 815 1,274 1,623 2,003 2,079 2,493 3,224 4,116 4,769 5,130 RESERVED 601 921 1,087 1,114 1,099 1,368 1,714 2,074 2,311 2,434 Cropp 138 250 335 364 382 447 580 687 771 790 House - - 58 276 294 378 437 546 634 673 MOHITO - - 5 40 62 104 259 456 523 586 SiNSAY - - - - - - - 74 225 329 Other 76 100 120 175 166 196 233 279 306 318 ESOTIQ 0 3 19 34 76 - - - - - REVENUES BY BRANDS (PLN m) STORES BY BRANDS 6,000 1,800 1,627 5,130 1,516 4,769 5,000 1,400 1,320 4,116 4,000 1,077 3,224 1,000 919 893 841 3,000 2,493 2,079 2,003 612 2,000 1,623 600 320 815 1,274 248 1,000 200 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 RESERVED Cropp House MOHITO SiNSAY Other ESOTIQ RESERVED Cropp House MOHITO SiNSAY Other ESOTIQ 09 RESERVED, SS16 10 3.1. RESERVED BRAND RESERVED is our anchor brand. It is a fast fashion brand offering clothes for a broad range of customers: men, women and children. The intention is to answer all the needs of the customer, starting from everyday clothes, through smart casual clothes for work and ending with party outfits. The brand is mainstream-priced with the average price tag reaching PLN 52 in 2015. The offer consists in 40% from base, while the remaining portion is made up of clothes with a different degree of the latest trends and must-haves. We continue to expand average store space to accommodate room for growing number of lines within collections. In 2015 we launched a sports line with clothes for running and Fast fashion brand KEY BRAND FEATURE training as well as a city line for trend setters. broad customer base The brand