Underpinned by Sales of Retail Segment
On annual basis, LPPF’s 3Q18 performance slightly lowered. Revenue grew by 2.9% y-y to IDR1.86 trillion backed by the growth of 4.6% in sales of the retail segment. Nevertheless, the slight decline in consignment sales and the hike of 5.1% y-y in COGS decelerated the overall margins and bottom line. Furthermore, net profit depleted 9.5% y-y. On the other side, LPPF’s SSSG (same store sales growth) nearly diving 26.0% in 3Q17 only surged to 3.6% in 3Q18. Despite the slight growth in SSSG, 9M18’s sales edged up 3.1% y-y.
LPPF’s strategy for building collaborations with other brands, e.g. Disney, Marvel, and activewear brands such as Nike and Puma is a potent driver for retail growth. Yet, the strategy is less successful to boost its revenue. In contrast to the less fruitful strategy, 3Q18’s sales through matahari.com climbed 24.2% y-y, prompted by the change of shopping trend from offline to online.
To launch One New Store in 4Q18
Despite no new store launched in 3Q18, LPPF will launch a new store in Gresik, East Java. Sales contribution from Java Island (outside greater Jakarta areas) hit 53.6% in 3Q18. it projects the launch of 5 new stores in 2019 (vs. 3 new stores launched in FY18E) and the closure of 3 less profitable stores.
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