© Reuters. FILE PHOTO: A woman looks at cloth at Polish fashion retailer LPP brand Reserved shop, amid the coronavirus disease (COVID-19), in Warsaw, Poland, September 4, 2020. REUTERS/Kacper Pempel
By Patrycja Zaras
GDANSK (Reuters) – Poland’s biggest fashion retailer LPP is not planning “significant” job cuts as it reduces costs, finance chief Przemyslaw Lutkiewicz told Reuters.
“Despite the expected slowdown, we are not planning group layoffs or even significant job cuts,” Lutkiewicz said in a statement e-mailed late on Thursday, adding that recent across-the-board cost increases had forced the company to focus on rationalising expenses in all areas of its operations.
During a call with analysts on Thursday, Lutkiewicz noted that third quarter results had shown the retailer’s operating expenses growing faster than sales, up 50% year on year and calling for cost saving measures.
LPP, which operates in nearly 40 countries in Europe, Africa and Asia and manages a network of more than 1,800 stores, is reviewing costs at every level, from better staff management to energy consumption in stores, he said on the call.
Lutkiewicz also said the retailer could cut back on its warehouses and ship more online orders from stores in a bid to reduce logistics costs.
The retailer, which owns brands Reserved, Sinsay and Mohito, reported a 37% year-on-year drop in third quarter net profit to 395.5 million zlotys ($21.64 million), on a 40% increase in revenue to 4.37 billion zlotys.
($1 = 4.4135 zlotys)
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