Overview
LPP shares slid 4.8% in trading to 20,860 PLN after the company released its Q1 fiscal 2026 results and announced a material reduction in its growth targets. Investors had been expecting a more ambitious expansion path for the Sinsay chain, and the revised plans and guidance triggered a significant negative reaction despite improved profitability for the quarter.
Guidance and expansion revisions
The company lowered its target for Sinsay openings in 2026 to 750 stores, down from the 950-store goal it had previously communicated. LPP also trimmed full-year revenue guidance to roughly 26–27 billion PLN, a marked decrease from the 28–29 billion PLN range it had been projecting as recently as late 2025.
Management additionally indicated a further slowing of new store rollouts beginning in 2029, targeting an annual pace of 300–350 locations. That shift signals a strategic pivot toward prioritizing profitability rather than sustaining the faster growth trajectory that had supported a premium valuation for the shares.
Quarterly results
On the earnings front, consolidated net profit attributable to shareholders rose to 475 million PLN in Q1 (February–April 2026), up from 334 million PLN a year earlier. Operating profit also improved, climbing to 688 million PLN from 464 million PLN in the prior-year period. Despite those gains, headline profit beats were not enough to counterbalance the downgraded expansion plan and revenue outlook.
Management pointed to weather-related headwinds as a factor in Q1 revenue growth slowing to 10.5% year-over-year, a deceleration from earlier quarters.
Market context and stock reaction
The weaker guidance and reduced expansion tempo appeared to be the primary drivers of the stock move. The broader market offered little solace; while the WIG20 index had risen 1.39% in the prior session on June 11 and Poland's macro backdrop remained broadly stable with the National Bank of Poland expected to keep its key rate unchanged, those factors did not offset company-specific concerns. The decline in LPP shares was therefore characterized as company-driven, diverging from the recent positive momentum in Warsaw equities.
LPP shares fell to a session low of 20,220 PLN before recovering modestly, yet remained well below the day's opening range and notably under the 52-week high of 24,480 PLN.
Bottom line
In sum, the combination of a lowered revenue target, a more conservative Sinsay expansion plan, and a slowdown in Q1 revenue growth overshadowed otherwise stronger profit metrics for the quarter, prompting the intraday selloff in LPP stock.