Indian retailer Arvind Fashions quarterly loss deepens on demand slump

Shoppers Stop

10/08/2023 09:33

BENGALURU, Aug 10 (Reuters) - Arvind Fashions  ARVF.NS ,
which houses brands such as US Polo and Calvin Klein in India,
reported on Thursday a loss in the first quarter, pulled down by
lacklustre demand as inflationary pressures prompted shoppers to
tighten their purse strings. 
    The Bengaluru-based company's consolidated net loss widened
to 164.3 million rupees ($1.98 million) for the three-month
period ended June 30, from a loss of 5.1 million rupees a year
earlier.
    Shares of Arvind Fashions dropped nearly 7% after the
results.
    The retail company, which has a portfolio of owned and
licenced renowned brands such as Sephora, Arrow, and Tommy
Hilfiger, said its revenue from operations rose 4% to 9.57
billion rupees.
    There was a slowdown in the online channel and consumption
demand, the company said in a statement, but forecast that
trends will improve gradually by the next festive season. 
    Revenue from the company's power brands such as US Polo and
Tommy Hilfiger, which account for nearly 80% of overall revenue,
rose 2%. Its emerging brands, which include Calvin Klein and
Sephora, posted a 15% increase in quarterly revenue. 
    The footwear and kidswear segments witnessed year-on-year
growth of 30% and 12%, respectively.
    Rivals Tata Group-owned Trent Ltd  TREN.NS , which operates
retail chain Westside, beat first-quarter revenue estimates due
to higher footfalls and store expansion, while Shoppers Stop Ltd
 SHOP.NS  reported a 34% slump in its first-quarter profit as
heavy discounts and investments to ramp up the business weighed.
    

    ($1 = 82.8200 Indian rupees)

 (Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by
Sherry Jacob-Phillips)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))