India's Trent posts five-fold jump in Q4 profit on more Zudio apparel stores

ARVIND FASHIONS

29/04/2024 12:00

BENGALURU, April 29 (Reuters) - Indian apparel retailer
Trent  TREN.NS  reported a five-fold jump in quarterly profit on
Monday, its third straight quarter of triple-digit profit
growth, as it opened more of its lower-priced Zudio brand of
stores. 
    The Tata Group-owned company reported its consolidated
profit before exceptional items and tax rose to 3.01 billion
rupees ($36.1 million) for the fourth quarter ended March 31,
from 601.7 million rupees a year earlier.
    It recorded a one-time gain of 5.76 billion rupees due to
reassessed lease contracts resulting from store consolidation or
closures, adjusting assets and liabilities accordingly.
    The retailer overcame sluggish demand and restrained
consumer spending by opening 86 Zudio stores, which sell
everything from dresses to perfume at less than 999 rupees
($12), attracting young consumers looking to regularly refresh
their wardrobes on a tight budget.
    Trent also opened 12 of its mid-range Westside stores,
boosting store counts under the Zudio and Westside brands to 545
and 232, respectively. 
    The company posted a 51% rise in revenue to 32.98 billion
rupees, marking its 13th straight quarter of revenue growth. Its
expenses rose 39.2%.
    Peers Arvind Fashions  ARVF.NS  and Aditya Birla Fashion
Retail  ADIA.NS  will report next month.
    Shares of Trent rose 29.2% in the March quarter.
 
($1 = 83.4691 Indian rupees)

 (Reporting by Ashna Teresa Britto and Navamya Ganesh Acharya in
Bengaluru; Editing by Janane Venkatraman
)
 ((AshnaTeresa.Britto@thomsonreuters.com;))