India's Arvind Fashions swings to quarterly profit on demand for premium products

Shoppers Stop

01/08/2024 10:46

BENGALURU, Aug 1 (Reuters) - Indian retailer Arvind Fashions  ARVF.NS  swung to
quarterly profit on Thursday, helped by strong demand for its premium products.
    The company, which sells clothing from brands such as Arrow, Calvin Klein and Tommy
Hilfiger, reported a consolidated net profit of 13.2 million rupees ($157,621.35) against a
loss of 164.3 million rupees a year ago.
    Its revenue from operations rose 10.2% to 9.55 billion rupees.
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3JO1BE
    
     
    
KEY CONTEXT 
    Indian retailers have been offering heavy discounts to sway customers amid heightened
competition. Premium products, aimed at high-income consumers, have remained a key driver of
sales growth. 
    For Arvind Fashions, sales of premium products and doubling of womenswear business were
the major growth drivers in the June quarter.
    Last month, Shoppers Stop  SHOP.NS  reported a dip in its quarterly profit.
    
      
    PEER COMPARISON   
  
    
                             Valuation     Estimates (next  Analysts' sentiment         
                              (next 12       12 months)                                 
                              months)                                                   
                RIC        PE      EV/EBI  Revenue  Profit  Mean    No of     Stock to  Div
                                   TDA     growth   growth  rating  analysts  price     yield
                                           (%)      (%)     *                 target**  (%)
 Arvind          ARVF.NS    44.45   11.97   12.71   50.91   Strong         5    0.89     0.25
 Fashions Ltd                                               Buy                         
 Shoppers Stop   SHOP.NS    83.76   20.57   16.87   30.58   Hold           6    0.95      -
 Ltd                                                                                    
 Trent Ltd       TREN.NS   120.93   69.78   35.59   52.91   Buy           12    1.35     0.06
 Aditya Birla    ADIA.NS     -      21.08   15.47     -     Sell          17    1.26      -
 Fashion and                                                                            
 Retail Ltd                                                                             
 
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and
Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the
stock is trading above the PT    

    
    APRIL-JUNE STOCK PERFORMANCE
    
  
    
 
-- All data from LSEG IBES

-- $1 = 83.7450 Indian rupees 
             

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Arvind Fashions June Qtr 2024 vs Peers    https://tmsnrt.rs/3Ww3exB
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 (Reporting by Ashish Chandra in Bengaluru; Editing by Mrigank Dhaniwala)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))