India's Arvind Fashions Q2 profit rises on healthy sales

Shoppers Stop

07/11/2023 09:44

BENGALURU, Nov 7 (Reuters) - India's Arvind Fashions
 ARVF.NS  reported a 18.9% rise in the second-quarter profit on
Tuesday, aided by healthy sales of clothing and footwear and as
power brands helped it maintain wider margins.
    The Bengaluru-based company's consolidated net profit rose
to 216.6 million rupees ($2.60 million) for the quarter ended
Sept. 30 from 182.2 million rupees a year earlier, sending its
shares up as much as 8%.
    While consumer demand continued to remain soft, Arvind
Fashions' strong performance in the multi-brand outlet channel
and tighter control over inventories resulted in higher profit,
the company said.
    The earnings before interest, taxes, depreciation, and
amortization (EBITDA) margin improved by about 50 basis points 
from a year ago, it added.
    Fashion retailers have seen a shift in demand due to a
delayed festive season, which for 2023, began late October.
    Usually, the festive season aids companies clock higher
annual sales as customers spend on clothes, accessories and
footwear.
    Arvind Fashions, which has a portfolio of owned and licenced
international brands such as Arrow and Calvin Klein, said its
consolidated revenue from operations rose 7% to 12.67 billion
rupees in the September quarter.
    Revenue from so-called power brands like US Polo and Tommy
Hilfiger, which accounts for more than 80% of the total, rose
5%. 
    The company's emerging brands segment clocked a 19% jump in
revenue while the footwear segment posted revenue growth of
about 20%.
    Last week, Arvind Fashions exited its Sephora India business
as the company sold its beauty brands division to billionaire
Mukesh Ambani's retail unit Reliance Retail.
    Rival Shoppers Stop  SHOP.NS  last month reported a drop in
the second-quarter profit. 
    Tata Group-owned Trent  TREN.NS , that operates retail chain
Westside, reported a near three-fold surge in profit on Tuesday.
    

($1 = 83.2600 Indian rupees)

 (Reporting by Dimpal Gulwani in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Dimpal.Gulwani@thomsonreuters.com;))