India's Arvind Fashions posts 71% surge in profit on demand for premium apparel

Shoppers Stop

05/02/2025 08:37

Feb 5 (Reuters) - India's Arvind Fashions  ARVF.NS , which retails clothing from premium brands such
as Calvin Klein and Tommy Hilfiger, reported a 71% jump in third-quarter profit on Wednesday, on robust
demand for high-end clothing in the festive period.
    The company said its profit after tax from continuing operations rose to 280 million rupees ($3.20
million) in the quarter ended Dec. 31 from 160 million rupees a year ago.
    Revenue from operations increased 6.9% to 12.03 billion rupees.
    Shares of the company were up 3.39%.
    
    KEY CONTEXT
    Indians typically splurge on everything from clothing to appliances in the October-December period, which
includes the Hindu festivals of Dussehra and Diwali, as well as Christmas and New Year's Eve.
    Timely winters and a strong wedding calendar also boost sales, the company said in a presentation to
investors.
    Arvind Fashions' portfolio of brands, especially Tommy Hilfiger and Calvin Klein, targets the more
affluent consumers, with prices well above mass-market brands such as Vero Moda and H&M.
    As a result, its bottom line has been more resistant to inflation-led slowdown in demand. The company
said it offered lower discounts on products in the third quarter.
    
    PEER COMPARISON 
                                   Valuation (next   Estimates (next    Analysts' sentiment
                                   12 months)        12 months)         
                        RIC        PE     EV/EBITDA  Revenue   Profit   Mean      # of    Stock to  Div yield
                                                     growth(%  growth(  rating*   analys  price     (%)
                                                     )         %)                 ts      target**  
 Arvind Fashions         ARVF.NS   39.36  10.58      12.71     68.90    Strong    5       0.75      0.26
                                                                        Buy                         
 Trent                   TREN.NS   98.19  59.92      31.78     41.92    Buy       15      0.91      0.06
 Shoppers Stop           SHOP.NS   91.34  10.89      15.80     254.10   Buy       5       0.79      
 Aditya Birla Fashion    ADIA.NS   --     17.69      13.40     --       Sell      17      0.95      
 and Retail                                                                                         
   
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
 OCTOBER TO DECEMBER STOCK PERFORMANCE 
 
    
 -- All data from LSEG
 -- $1 = 87.4175 Indian rupees



    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Arvind Fashions' Third Quarter Stock Performance    https://tmsnrt.rs/4jGgKcI
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Ananta Agarwal in Bengaluru; Editing by Savio D'Souza)
 ((Ananta.agarwal@thomsonreuters.com;))