India's Arvind Fashions posts Q3 profit rise on strong festive demand

ARVIND FASHIONS

14/02/2023 09:18

BENGALURU, Feb 14 (Reuters) - Arvind Fashions Ltd
 ARVF.NS , which houses brands like Calvin Klein and Sephora in
India, posted a 28.2% rise in third-quarter profit on Tuesday,
boosted by resilient demand for clothes and footwear during the
festive season.
    The Bengaluru-based company reported a consolidated net
profit of 80.9 million rupees ($977,584.44) for the three months
ended Dec. 31, compared with 63.1 million rupees a year earlier.
    Companies such as Arvind get a bulk of their sales during
the festive season, when Indians tend to spend heavily on
everything from jewellery to clothes.
    With more people venturing out of their homes, the company
said it benefitted from increased demand for formal and occasion
wear.
    The retail company, with a portfolio of owned and licenced
international brands, including US Polo, Arrow and Tommy
Hilfiger, said total revenue from operations rose 16.8% to 1.79
billion rupees.
    Arvind said brands like Tommy Hilfiger and US Polo helped
lift revenue 18%.
    Its gross margins improved 160 basis points in the quarter
due to fewer discounts. 
    Like many of its peers, the retailer reported a surge in
expenses, which for Arvind jumped 16.7% to 11.61 billion rupees.
    It said markets experienced a subdued Diwali and a delayed
start to winter, while also registering seeing muted demand in
smaller towns.
    Shares, which rose 27.6% in 2022, fell as much as 5% after
results on Tuesday.
    ($1 = 82.7550 Indian rupees)
  
 (Reporting by Yagnoseni Das in Bengaluru)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066))