India's Metro Brands falls on weak footwear demand, margin pressure

Metro Brands

Mon 08:47

** Shares of India's Metro Brands METB.NS fall as much as 1.5% to 887 rupees; stock last down 1%  
** Apparel co's consolidated net profit rose 11.9 Y/Y to 758 million rupees ($7.99 million) but declined 19.2% Q/Q from 938 million rupees
** Philip Capital says sales growth was impacted by festival timing shift and delayed and weak monsoons in Q2 that reduced demand for seasonal footwear 
** Goldman Sachs expects sales growth to accelerate to mid-teens in second half of the year but says co's margins could be pressured due to higher staff incentive payouts and expansion of Clarks EBO
** Motilal Oswal notes higher costs, slower store expansion  and challenges in brands such as Foot Locker, FILA and MetroActiv could weigh on co's near-term growth
** Stock down 26.20% YTD
     

($1 = 94.8400 Indian rupees)

 (Reporting by Anushka Rajvedi in Bengaluru)
 ((mailto: anushka.rajvedi@thomsonreuters.com))