Impact of Macroeconomic Shocks on Financial Performance and Risk Management: A Case Study of LPP SA During the COVID-19 Pandemic and the Ukraine War

This study analyses the impact of two major macroeconomic shocks—the COVID-19 pandemic and the Ukraine war—on the financial stability of LPP SA, a leading apparel company in Poland and Central and Eastern Europe. This research uses the coefficient of variation to assess changes in financial volatility and evaluates the effectiveness of LPP SA’s risk management strategies. The findings reveal that, while the COVID-19 pandemic had a more destabilising effect on the company’s performance, the Ukraine war’s impact was mitigated by strategic diversification and resource reallocation. The study’s implications are relevant for risk management practices in the apparel industry and other consumer-driven sectors.