Indian fashion retail giants showcase diverse performances in Q2 FY24

Shoppers Stop: Steady yet subdued performance

Shoppers Stop reported flat year-on-year (YoY) sales at ₹1,271 crore due to softer demand. However, the average transaction value (ATV) increased by 5 per cent to ₹4,383 from ₹4,179, and the Average Selling Price (ASP) also saw a 5 per cent rise to ₹1,539 from ₹1,466, indicating a trend towards premiumisation. Items per ticket (IPT) increased by 1 per cent. The company's First Citizen programme contributed 77 per cent to the sales mix, with sales from repeat customers at 64 per cent and new enrolments at 13 per cent. Non-apparel segments grew by 4 per cent, led by handbags at a 14 per cent rise, luggage at a 5 per cent rise, and footwear at a 5 per cent increase. Financially, EBITDA stood at ₹41 crore (3.7 per cent of sales), with negative profit before tax (PBT) at ₹2 crore and negative profit after tax (PAT) at ₹3 crore, both accounting for minus 0.2 per cent of sales.

Aditya Birla Fashion and Retail Ltd (ABFRL): Modest growth amidst market slowdown

ABFRL posted a 5 per cent YoY growth with revenue reaching ₹3,226 crore. The muted revenue growth is attributed to sluggish market conditions and the shift of the festive period to Q3. The company's consolidated EBITDA for the quarter was ₹369 crore, with an EBITDA margin of 11.4 per cent. ABFRL expanded its store network to over 4,050, adding a net of 48 stores in this quarter. This included net 17 stores for Lifestyle Brands and a net addition of 5 stores for Pantaloons.

Reliance Retail Ventures Limited (RRVL): Robust growth & expansion

RRVL, a key arm of Reliance Industries Limited, reported a gross revenue of ₹77,148 crore, marking an 18.8 per cent growth YoY. The EBITDA margin improved by 70 basis points to 8.1 per cent. The company opened 471 new stores, taking its total count to 18,650. The fashion and lifestyle business delivered a 32 per cent YoY growth. The lingerie segment saw increased traffic during its ‘Grand Lingerie Festival’. Ajio, the online fashion platform, expanded its catalogue by 50 per cent YoY and added 2 million new customers. Ajio Luxe also expanded its portfolio to over 600 brands.

Trent Ltd: Impressive surge in revenue & PBT

Trent Ltd, part of the Tata group, reported a substantial 52 per cent increase in consolidated revenues, reaching ₹3,164 crore. The profit before tax showed an impressive YoY growth of 129 per cent, standing at ₹314 crore. The company continued its expansion with the addition of 38 new stores, enhancing its retail presence across the country. The like-for-like growth of over 10 per cent in its fashion concepts indicates a strong consumer response despite market challenges.

Fibre2Fashion News Desk (DP)