Indian retailer Arvind Fashions' Q4 profit jumps on boost in sales

ARVIND FASHIONS

30/05/2023 11:59

BENGALURU, May 30 (Reuters) - Arvind Fashions Ltd
 ARVF.NS , which houses brands like US Polo and Calvin Klein in
India, reported a 31.8% rise in fourth-quarter profit on
Tuesday, boosted by growth in sales.
    The Bengaluru-based company's consolidated net profit from
continuing operations rose to 294.9 million rupees ($3.57
million) for the three months ended March 31, from 223.8 million
rupees a year earlier.
    Most apparel and footwear companies are reporting profit
this quarter as high-end customers are back to pre-pandemic
level shopping, led by increased demand for formal and occasion
wear.
    The retail company, with a portfolio of owned and licenced
international brands, including Sephora, Arrow and Tommy
Hilfiger, said revenue from operations rose 24.4% to 11.40
billion rupees.
    According to the company, the sales growth was led by a
robust winter wear business aided by the late onset of winter
and good end-of-season sale. 
    Revenue from the company's power brands like US Polo and
Tommy Hilfiger, which account for more than 80% of the total,
rose 26.2%. Its emerging brands, including Calvin Klein and
Sephora, also reported a 16.8% rise in revenue. 
    The footwear and kids wear segments too witnessed growth of
more than 50% and nearly 25% respectively year-on-year.
    Rivals Tata Group-owned Trent Ltd  TREN.NS  which operates
the retail chain Westside posted a 65% jump in profit, while
Shoppers Stop Ltd  SHOP.NS  swung to profit this quarter.
However, Aditya Birla Fashion and Retail Ltd  ADIA.NS  reported
its first quarterly loss in nearly two years.
    The company also recommended a dividend of 1 rupee per share
for the financial year ended March 31, 2023.
    Shares of Arvind Fashions closed up 2.56% at 272.65 rupees
after the results. 
        
($1 = 82.7058 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by Sohini
Goswami)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))