Investing.com -- Poland’s largest fashion retailer, LPP, announced a 7% decline in its fourth-quarter net profit on Thursday.
The company’s net profit fell to 450 million zlotys ($117.55 million), falling short of analysts’ prediction by 70 million zlotys. This drop in profit is attributed to rising operational costs, even though the company experienced robust online sales.
The proportion of selling, general, and administrative costs (SG&A) in the company’s revenue increased to 41% in the quarter, compared to 38% in the same period a year earlier.
LPP attributed this increase in costs to additional expansion expenses and higher labor costs. Despite the increase in online sales, these rising costs have impacted the company’s earnings.
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