Indian fashion retailers shine in Q3 FY24 with robust growth

Shoppers Stop Ltd experienced a modest sales growth of 7 per cent in Q3 FY24, with sales rising from ₹1,132 crore in Q3 FY23 to ₹1,207 crore. Despite the increase in sales, the company faced a downturn in profitability, as gross margin fell by 110 basis points to 39.7 per cent. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) decreased by 9 per cent, and both profit before tax (PBT) and profit after tax (PAT) saw significant declines of 42 per cent and 43 per cent respectively. The First Citizen loyalty programme continued to drive sales, contributing 78 per cent to overall sales, with 65 per cent from repeat members and 13 per cent from new members.

Raymond Ltd reported an impressive 11 per cent year-over-year (YoY) revenue growth to ₹2,450 crore. Net profit nearly doubled to ₹184 crore, from ₹95 crore in Q3 FY23, with an EBITDA margin of 17.4 per cent. The branded apparel segment saw a 20 per cent increase in sales, reaching ₹437 crore, while the high value cotton shirting segment posted a 10 per cent sales increase to ₹214 crore. The company celebrated the opening of the 100th 'Ethnix by Raymond' store, expanding its total retail network to 1,512 stores.

Reliance Retail Ventures Limited (RRVL), a division of Reliance Industries Limited (RIL), delivered a notable 22.8 per cent YoY growth in gross revenue, amounting to ₹83,063 crore. The quarter was marked by a 31.1 per cent increase in EBITDA, driven by record festive season footfalls. The company expanded its store network by 252 new stores, totalling 18,774 stores. Digital commerce and new commerce businesses contributed 19 per cent of the revenue, with the fashion and lifestyle business growing by 28 per cent YoY. Ajio, RIL’s online fashion platform, continued to expand its brand offerings and launched AjioGram, a platform supporting fashion startups.

Trent Ltd, part of the Tata Group, reported a significant 50.5 per cent YoY revenue increase to ₹3,466 crore and a remarkable 124.17 per cent increase in profit YoY. Net profit soared by 140 per cent to ₹370.6 crore, and EBITDA grew by 95 per cent to ₹629 crore, with an EBITDA margin expansion of more than 400 basis points to 18.1 per cent. The company expanded its footprint by adding five Westside and 50 Zudio stores across 36 cities, including 13 new cities, bringing its total store count to 227 Westside, 460 Zudio, and 28 other lifestyle concept stores.

Fibre2Fashion News Desk (DP)