• Linkdin
Coats Webinar
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

India's fashion retail giants report mixed performance in Q1 FY25

15 Aug '24
18 min read
India's fashion retail giants report mixed performance in Q1 FY25
Pic: Adobe Stock

Insights

  • India's leading fashion retailers showed mixed results in Q1 FY25.
  • Shoppers Stop saw a 5 per cent sales rise.
  • Raymond Lifestyle reported an 8 per cent revenue decline, while Reliance Retail posted an 8.1 per cent revenue increase.
  • ABFRL's revenue stayed flat but improved profitability.
  • Arvind Fashions reported revenue growth but swung to a net loss.

India's leading fashion retailers have reported mixed financial performances for the first quarter of fiscal 2025 (Q1 FY25), reflecting the diverse challenges and opportunities in the market. Here’s an in-depth analysis of how some of the top players fared during the period.

Shoppers Stop

Shoppers Stop, a prominent name in the Indian fashion retail sector, recorded sales of ₹10.34 billion (approximately $123.6 million) in Q1 FY25, marking a 5 per cent increase from ₹9.82 billion in the same period the previous year. However, despite the rise in sales, the company faced margin pressures, with its gross margin declining to 40.6 per cent from 42.3 per cent, a drop of 170 basis points.

The company's EBITDA for the quarter stood at ₹1.46 billion, representing a 19 per cent decline from ₹1.8 billion in Q1 FY24. This downturn in operating performance led to a significant loss before tax (PBT) of ₹320 million, a stark contrast to the profit of ₹200 million recorded in the previous year, indicating a negative growth of 256 per cent. The net loss after tax (PAT) also reflected this downturn, amounting to ₹230 million, compared to a profit of ₹150 million in Q1 FY24, reflecting a negative growth of 253 per cent.

Raymond Lifestyle Ltd

Raymond Lifestyle Ltd, a key player in India’s textile and apparel industry, reported a decline in consolidated revenue, which fell by 8 per cent to ₹12.49 billion (approximately $147.77 million) in Q1 FY25, down from ₹13.54 billion in the corresponding period last year. The company attributed the revenue decline to subdued consumer demand, prolonged heat waves, general elections, fewer wedding dates, and inflation, which collectively impacted overall revenue performance and margins.

The total EBITDA for Raymond Lifestyle Ltd plummeted by 52 per cent to ₹870 million, down from ₹1.79 billion in Q1 FY24, resulting in a sharp drop in the EBITDA margin to 7 per cent from 14 per cent in the previous year.

Reliance Retail Ventures Limited (RRVL)

Reliance Retail Ventures Limited (RRVL), one of India’s largest retailers, posted a strong performance in Q1 FY25, with revenues reaching ₹756.15 billion (approximately $9 billion), an 8.1 per cent year-on-year (YoY) increase. The company’s EBITDA rose by 10.5 per cent YoY to ₹56.64 billion, driven by higher footfalls and an expanded store footprint. EBITDA before Investment Income was ₹54.48 billion, marking an 11.5 per cent YoY growth.

RRVL continued its aggressive expansion strategy, opening 331 new stores during the quarter, bringing the total store count to 18,918 and increasing the operational area to 81.3 million square feet. The quarter saw over 296 million footfalls, an 18.9 per cent YoY growth. Digital commerce and new commerce channels contributed significantly, accounting for 18 per cent of the total revenue.

Aditya Birla Fashion and Retail Ltd (ABFRL)

Aditya Birla Fashion and Retail Ltd (ABFRL) reported revenues of ₹29.86 billion (approximately $355.6 million) for Q1 FY25, almost flat compared to ₹29.87 billion in the same period last year. However, the company managed to reduce its net loss to ₹89.7 million from ₹486 million in Q1 FY24, reflecting a marked improvement in profitability.

The company’s operating profit margin (OPM) improved to 17.09 per cent from 14.15 per cent, highlighting better cost management and operational efficiencies. The net profit margin (NPM) also saw an improvement, though it remained negative at minus 0.30 per cent, compared to minus 1.63 per cent in the previous year.

Arvind Fashions

Arvind Fashions, another significant player in the Indian fashion retail sector, reported revenue growth in Q1 FY25, reaching ₹1.37 billion (approximately $16.31 million), up from ₹1.21 billion in the same period last year. However, the company swung to a net loss of ₹43.1 million from a profit of ₹387.82 million in Q1 FY24, marking a sharp decline in profitability.

The company’s operating profit margin (OPM) was 8.29 per cent, down significantly from 44.29 per cent in the previous year, indicating considerable margin pressure. The net profit margin (NPM) also turned negative at minus 3.15 per cent, down from 32.17 per cent in Q1 FY24.

Fibre2Fashion News Desk (DP)

Leave your Comments

Esteemed Clients

Woolmark Services India Pvt. Ltd.
Weitmann & Konrad GmbH & Co. KG
VNU Exhibitions Asia
USTER
UBM China (Shanghai)
Tuyap Tum Fuarcilik Yapim A.S.
TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
X
Advanced Search