Friday’s trading session on the Warsaw Stock Exchange delivered a sharp divergence among Polish fashion retailers. While LPP shares plunged more than 5 percent, sending the stock below 21,000 PLN, Modivo (formerly CCC) surged as much as 10 percent toward 84 PLN per share within the first five hours of trading.
The contrasting moves came after both companies published their first-quarter results for the 2026/27 fiscal year. LPP reported a net profit of 475 million PLN for the period from February to April 2026, up from 334 million PLN a year earlier. However, the company also announced it would scale back its expansion plans for the Sinsay brand, cutting the planned number of new store openings from 950 to 750 this year, with a similar target for 2027.
Disciplined expansion versus market realities
– We are adjusting the pace of new openings to current market and operational conditions, with a greater focus on long-term quality of expansion and profitability potential of new locations – the company stated in its release. The decision reflects varying dynamics across different regions where LPP operates. The market punished the cautious outlook, pushing the stock down by more than 6 percent at one point on Friday, with trading volumes exceeding 280 million PLN for both companies combined within the first hour.
LPP, the owner of brands such as Reserved, Sinsay, Cropp and House, currently has a market capitalization of around 38 billion PLN. Investors seemed disappointed by the reduced store rollout despite the strong profit beat, interpreting the move as a sign of slowing growth momentum.
Modivo’s surprise comeback on sales surge
Modivo, the e-commerce fashion platform spun off from CCC, painted a very different picture. The company posted a net loss of 8.1 million PLN in the first quarter, compared to a profit of 95.4 million PLN a year earlier. Yet investors looked past the red figure and focused on management’s estimate that sales jumped 18 percent between May 1 and June 10. That growth spurt reignited buying interest and propelled Modivo’s shares to session highs, bringing its market cap to just under 6.5 billion PLN.
– The strong May-June performance surprised the market, as many had expected a more subdued consumer environment – noted one Warsaw-based analyst. The reaction shows that in the current climate, top-line momentum can outweigh bottom-line pain, especially for growth-oriented retail names.
The divergent fortunes of the two stocks underscore the polarised sentiment on the Polish stock exchange, where investors are rewarding companies showing robust sales recoveries while punishing those perceived to be tapping the brakes on expansion, even if profitability remains sound.
Źródło: WNP.PL, Fot. Robson90 / Shutterstock
