# LPP (LPP.WAR)

Canonical: https://gigainvestors.com/s/LPP.WAR

Analysis as of: 2026-10-16T07:35:27.631Z. Financial observations: FY2006–FY2026.

Listing currency: PLN. Reporting currency: PLN.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: PLN 26,400.00 per share; close as of 2026-10-15.

Estimated value: low PLN 4,130.31 per share, central PLN 5,696.47 per share, high PLN 6,573.66 per share. Buy at or below the central value PLN 5,696.47 per share. Valuation as of 2026-10-16T07:35:27.631Z; scenarios are not confidence intervals.

Expected annual return: 4.6% at the stated quote. About 4.6% a year at today's price (required return 10.4%). required return 10.4% a year (PL 10-year bond 6.4% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.38×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.04×

- FY2018: 0.08×

- FY2019: 0.09×

- FY2020: 0.10×

- FY2021: 0.02×

- FY2022: 0.11×

- FY2023: 0.09×

- FY2024: 0.13×

- FY2025: 0.12×

- FY2026: 0.11×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 15.8%

- ROIC, second-lowest year: 9.9%

- Typical minus recent gross margin: 5.9 pp

- Typical gross margin (annual median): 52.5%

- Recent gross margin (lower of latest and 3-year median): 46.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.2%

- ROIC including acquisitions, ten-year median: 5.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 9.9%

- FY2018: 23.5%

- FY2019: 29.4%

- FY2020: 10.9%

- FY2021: 2.3%

- FY2022: 18.4%

- FY2023: 15.1%

- FY2024: 18.4%

- FY2025: 15.3%

- FY2026: 16.3%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.40×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: PLN 2.8B

- Net income, five-year total: PLN 6.9B

- Return on incremental invested capital: 36.9%

- Working capital / revenue, annual change: 1.1 pp

- Working capital / revenue, change between three-year averages: 7.1 pp

- Working capital / revenue, final three-year average: 15.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.12×

- FY2023: 0.33×

- FY2024: 0.70×

- FY2025: 0.45×

- FY2026: 0.26×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 23.5% vs 16.3%

- Per-share earnings: 193.00 to 865.94 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.2%

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: PLN 27B

- Cumulative retained earnings: PLN 1.5B

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 20.6%

- Per-share value change: PLN 672.94

- Per-share value, starting three-year median: PLN 193.00

- Per-share value, ending three-year median: PLN 865.94

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.0%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: PLN 431M

- Cumulative net income, 10 years: PLN 8.3B

- ROIC, first three-year median: 23.5%

- ROIC, last three-year median: 16.3%

Chart: Earnings per share; fiscal year observations.

- FY2017: PLN 95.33

- FY2018: PLN 240.43

- FY2019: PLN 275.39

- FY2020: PLN 264.94

- FY2021: PLN -103.34

- FY2022: PLN 518.53

- FY2023: PLN 590.03

- FY2024: PLN 865.94

- FY2025: PLN 940.56

- FY2026: PLN 807.49

### accounting: pass

- Sloan accruals: -14.6%

- Receivables to sales index (DSRI): 0.46×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.87×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.13×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -14.8%

- FY2018: -10.8%

- FY2019: -13.1%

- FY2020: -11.3%

- FY2021: -12.2%

- FY2022: -14.5%

- FY2023: 3.7%

- FY2024: -19.8%

- FY2025: -13.0%

- FY2026: -14.6%

## Holders

## Price story

Price needs cash profits to grow 27.3% a year for ten years · sales +14.4%

Story as of 2026-10-16T10:00:04.964Z; price observation 2026-10-15.

Price needs cash profits to grow 27.3% a year for ten years

### Sales · FY2025–2026

sales +14.4%; source https://filings.xbrl.org/259400NUS7MKGPJL4752/2023-01-31/ESEF/PL/0/GK_LPP_2023-01-31_PL/reports/GK_LPP_2023-01-31_PL.xhtml; observed 2023-05-16.

- FY2017: PLN 6.0B 

- FY2018: PLN 7.0B 

- FY2019: PLN 8.0B 

- FY2020: PLN 9.2B 

- FY2021: PLN 7.8B 

- FY2022: PLN 14B 

- FY2023: PLN 16B 

- FY2024: PLN 17B 

- FY2025: PLN 20B 

- FY2026: PLN 23B 

### Gross margin · FY2026

gross margin 46.6%; source https://filings.xbrl.org/259400NUS7MKGPJL4752/2023-01-31/ESEF/PL/0/GK_LPP_2023-01-31_PL/reports/GK_LPP_2023-01-31_PL.xhtml; observed 2023-05-16.

- FY2017: 48.7% 

- FY2018: 52.9% 

- FY2019: 54.7% 

- FY2020: 53.6% 

- FY2021: 52.0% 

- FY2022: 57.8% 

- FY2023: 51.1% 

- FY2024: 51.5% 

- FY2025: 53.1% 

- FY2026: 46.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in apparel manufacturing; annual sales are PLN 23.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); FY2026: revenue 23109000000; grossProfit 10767000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LPP.WAR: LPP SA designs, manufactures, and distributes apparel for women, men, and children. It offers apparel, accessories, footwear, and supplementary items under the Reserved, Cropp, House, Mohito, and Sinsay brand names. The company sells its products through offline and online stores. LPP SA was incorporated in 1989 and is headquartered in Gdansk, Poland.

### Why customers stay

Margins ranged from 46.6% to 53.1% during 2024–26; it earns 15.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); FY2024: grossProfit / revenue = 51.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); FY2025: grossProfit / revenue = 53.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); FY2026: grossProfit / revenue = 46.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); 10-year return on capital observations [[2017,0.09852563433267895],[2018,0.23468437288529928],[2019,0.29358407458745367],[2020,0.10911792124760228],[2021,0.022753894254559336],[2022,0.18358057668472844],[2023,0.15140697501234185],[2024,0.18439439531431023],[2025,0.15296206800955756],[2026,0.16328060925502355]]; median 0.15812133863229055. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 36.9% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); FY2017: growth capex 4450000; upkeep 267381000; owner earnings 174775000. Growth capex / owner earnings = 0.02546130739522243.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); FY2018: growth capex 148167000; upkeep 293429000; owner earnings 440851000. Growth capex / owner earnings = 0.33609314711773364.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); FY2019: growth capex 222874166.3500464; upkeep 575976833.6499536; owner earnings 278362166.3500464. Growth capex / owner earnings = 0.8006625658667182.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); FY2022: growth capex 381241000; upkeep 943427000; owner earnings 118063600. Growth capex / owner earnings = 3.2291154936830657.

- Source: https://filings.xbrl.org/259400NUS7MKGPJL4752/2023-01-31/ESEF/PL/0/GK_LPP_2023-01-31_PL/reports/GK_LPP_2023-01-31_PL.xhtml (filed 2023-05-16); FY2023: growth capex 27738000; upkeep 1129200000; owner earnings 362652000. Growth capex / owner earnings = 0.07648654908838225.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); FY2024: growth capex 0; upkeep 1089800000; owner earnings 1118780000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); FY2025: growth capex 129000000; upkeep 1689000000; owner earnings 792800000. Growth capex / owner earnings = 0.16271442986881937.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); FY2026: growth capex 1096000000; upkeep 2075000000; owner earnings 393600000. Growth capex / owner earnings = 2.7845528455284554.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); Incremental return on capital 0.3685936842619394, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); Dividend observations: [[2017,59936000],[2018,65527000],[2019,73342000],[2020,110065000],[2021,833590000],[2022,833590000],[2023,648300000],[2024,797700000],[2025,1132000000],[2026,1225000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 31.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LPP.WAR SharesStats.PercentInsiders = 31.145 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 27.3% yearly over ten years; actual growth was 9.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2023-05-16); Ten-year compound average after fade. Initial solved rate 0.38746910255393463. Price 26400; FX 1; discount 0.10372; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 87.79099145759392 → FY2026 211.88630490956072. Closing-price date 2026-10-15.

## Monthly share-price history (PLN per share)

- 2016-10: PLN 5,880.00 per share

- 2016-11: PLN 5,770.20 per share

- 2016-12: PLN 5,673.60 per share

- 2017-01: PLN 5,099.95 per share

- 2017-02: PLN 5,661.30 per share

- 2017-03: PLN 6,794.85 per share

- 2017-04: PLN 6,940.00 per share

- 2017-05: PLN 6,270.90 per share

- 2017-06: PLN 7,150.00 per share

- 2017-07: PLN 7,000.00 per share

- 2017-08: PLN 8,732.40 per share

- 2017-09: PLN 8,172.05 per share

- 2017-10: PLN 8,573.85 per share

- 2017-11: PLN 8,173.95 per share

- 2017-12: PLN 8,910.00 per share

- 2018-01: PLN 9,730.00 per share

- 2018-02: PLN 9,015.00 per share

- 2018-03: PLN 8,700.00 per share

- 2018-04: PLN 9,170.00 per share

- 2018-05: PLN 9,420.00 per share

- 2018-06: PLN 8,485.00 per share

- 2018-07: PLN 8,975.00 per share

- 2018-08: PLN 9,205.00 per share

- 2018-09: PLN 8,625.00 per share

- 2018-10: PLN 7,850.00 per share

- 2018-11: PLN 7,820.00 per share

- 2018-12: PLN 7,850.00 per share

- 2019-01: PLN 8,370.00 per share

- 2019-02: PLN 8,155.00 per share

- 2019-03: PLN 8,325.00 per share

- 2019-04: PLN 8,565.00 per share

- 2019-05: PLN 7,335.00 per share

- 2019-06: PLN 7,640.00 per share

- 2019-07: PLN 7,845.00 per share

- 2019-08: PLN 7,430.00 per share

- 2019-09: PLN 8,600.00 per share

- 2019-10: PLN 8,155.00 per share

- 2019-11: PLN 8,700.00 per share

- 2019-12: PLN 8,820.00 per share

- 2020-01: PLN 8,465.00 per share

- 2020-02: PLN 6,900.00 per share

- 2020-03: PLN 5,230.00 per share

- 2020-04: PLN 6,500.00 per share

- 2020-05: PLN 6,860.00 per share

- 2020-06: PLN 6,010.00 per share

- 2020-07: PLN 6,900.00 per share

- 2020-08: PLN 7,185.00 per share

- 2020-09: PLN 6,570.00 per share

- 2020-10: PLN 5,240.00 per share

- 2020-11: PLN 6,870.00 per share

- 2020-12: PLN 8,285.00 per share

- 2021-01: PLN 7,690.00 per share

- 2021-02: PLN 7,825.00 per share

- 2021-03: PLN 8,125.00 per share

- 2021-04: PLN 9,800.00 per share

- 2021-05: PLN 11,200.00 per share

- 2021-06: PLN 12,870.00 per share

- 2021-07: PLN 13,840.00 per share

- 2021-08: PLN 13,960.00 per share

- 2021-09: PLN 14,800.00 per share

- 2021-10: PLN 14,330.00 per share

- 2021-11: PLN 13,380.00 per share

- 2021-12: PLN 17,200.00 per share

- 2022-01: PLN 15,890.00 per share

- 2022-02: PLN 8,655.00 per share

- 2022-03: PLN 11,470.00 per share

- 2022-04: PLN 9,405.00 per share

- 2022-05: PLN 10,260.00 per share

- 2022-06: PLN 8,995.00 per share

- 2022-07: PLN 9,885.00 per share

- 2022-08: PLN 8,490.00 per share

- 2022-09: PLN 7,795.00 per share

- 2022-10: PLN 8,290.00 per share

- 2022-11: PLN 9,565.00 per share

- 2022-12: PLN 10,650.00 per share

- 2023-01: PLN 10,120.00 per share

- 2023-02: PLN 9,420.00 per share

- 2023-03: PLN 9,580.00 per share

- 2023-04: PLN 12,000.00 per share

- 2023-05: PLN 12,000.00 per share

- 2023-06: PLN 14,010.00 per share

- 2023-07: PLN 13,800.00 per share

- 2023-08: PLN 13,880.00 per share

- 2023-09: PLN 13,000.00 per share

- 2023-10: PLN 13,560.00 per share

- 2023-11: PLN 14,880.00 per share

- 2023-12: PLN 16,190.00 per share

- 2024-01: PLN 15,570.00 per share

- 2024-02: PLN 17,940.00 per share

- 2024-03: PLN 15,300.00 per share

- 2024-04: PLN 15,730.00 per share

- 2024-05: PLN 17,340.00 per share

- 2024-06: PLN 17,090.00 per share

- 2024-07: PLN 15,190.00 per share

- 2024-08: PLN 14,740.00 per share

- 2024-09: PLN 15,790.00 per share

- 2024-10: PLN 14,510.00 per share

- 2024-11: PLN 15,660.00 per share

- 2024-12: PLN 15,550.00 per share

- 2025-01: PLN 16,460.00 per share

- 2025-02: PLN 18,260.00 per share

- 2025-03: PLN 17,610.00 per share

- 2025-04: PLN 15,400.00 per share

- 2025-05: PLN 14,420.00 per share

- 2025-06: PLN 14,670.00 per share

- 2025-07: PLN 16,690.00 per share

- 2025-08: PLN 17,250.00 per share

- 2025-09: PLN 17,680.00 per share

- 2025-10: PLN 17,930.00 per share

- 2025-11: PLN 17,010.00 per share

- 2025-12: PLN 20,810.00 per share

- 2026-01: PLN 19,650.00 per share

- 2026-02: PLN 20,670.00 per share

- 2026-03: PLN 22,300.00 per share

- 2026-04: PLN 21,880.00 per share

- 2026-05: PLN 22,580.00 per share

- 2026-06: PLN 18,280.00 per share

- 2026-07: PLN 21,720.00 per share

- 2026-08: PLN 20,840.00 per share

- 2026-09: PLN 24,840.00 per share

- 2026-10: PLN 25,260.00 per share

## Annual estimated value (PLN per share)

- FY2017: low PLN 2,228.57 per share, central PLN 2,892.99 per share, high PLN 3,336.66 per share

- FY2018: low PLN 2,828.72 per share, central PLN 3,922.46 per share, high PLN 4,535.05 per share

- FY2019: low PLN 2,506.15 per share, central PLN 3,327.22 per share, high PLN 3,787.11 per share

- FY2020: low PLN 2,775.27 per share, central PLN 3,622.55 per share, high PLN 4,097.11 per share

- FY2021: low PLN 2,164.63 per share, central PLN 2,334.10 per share, high PLN 2,556.39 per share

- FY2022: low PLN 1,609.31 per share, central PLN 1,697.15 per share, high PLN 1,812.38 per share

- FY2023: low PLN 1,147.90 per share, central PLN 1,265.02 per share, high PLN 1,400.52 per share

- FY2024: low PLN 1,719.44 per share, central PLN 2,146.50 per share, high PLN 2,385.69 per share

- FY2025: low PLN 3,918.22 per share, central PLN 5,257.75 per share, high PLN 6,008.02 per share

- FY2026: low PLN 4,108.13 per share, central PLN 5,640.85 per share, high PLN 6,499.33 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:14.293Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/259400NUS7MKGPJL4752/2023-01-31/ESEF/PL/0/GK_LPP_2023-01-31_PL/reports/GK_LPP_2023-01-31_PL.xhtml); period 2023-01-31, filed 2023-05-16.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations