As a consequence of a study conducted by Hindenburg Research that cast doubt on the 2022 sale of its Russian assets, the shares of the Polish fashion company LPP (LPPP.WA).
This allowed the company to recuperate some of the losses that it had experienced the previous week. LPP issued a statement on Friday that rejected the allegations that were included in the study.
After experiencing a drop of 36% on Friday, which was the biggest on record, the stock had rebounded by 8.2% as of 8:36 GMT. This was the highest decrease on record.
It was revealed by the company that there was a preliminary increase in sales for the fourth quarter of 15.7%, which brought the total to 4.84 billion zlotys, which is equivalent to $1.2 billion. Additionally, the net profit from continuing activities was 484.4 million zlotys, which is a year-on-year rise of 163.5% that was achieved.
An analyst from Erste Group by the name of Krzysztof Kawa claimed that the findings were reasonable and in accordance with what was anticipated.
The full findings are expected to be revealed on March 27th, according to the schedule.
The financial institution JPMorgan anticipated that the volatility in the shares would continue, as stated in a note that was published by the business. It was also revealed in the study that twenty percent of LPP's shares were pledged with banks, which could lead to margin calls in the future.
In addition to the possible harm to its reputation, LPP may also be exposed to the prospect of poor consumer reactions, which may result in decreased sales, as well as adverse reactions from the company's creditors, as stated by JPMorgan. This is in addition to the potential damage to its reputation.
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