Feedback
A pioneer B2B media and publication platform connecting with Fashion Brands & Retail in India
 

Trent to recover as pandemic impact subsides

  

As the pandemic impact subsides with the economic activity picking up pace, Trent may find itself better placed compared to peers. Its flagship concept, Westside, which contributes a big share of revenues, is expected to continue to play a key role in boosting earnings.

According to Axis Securities, factors that could drive recovery post FY21 include Westside’s success in retail concept driven by exclusive/trendy offerings at competitive prices, significant growth opportunities in Zudio format driven by aggressive store additions beyond metros and rise in consumer preference towards value fashion owing to the pandemic led financial constraints.

Trent’s prospects appear better from a medium term perspective. The retailer expects a strong recovery, driving a 18 per cent standalone revenue compound annual growth rate over FY20-23, says Jefferies analysts. Though the retailer may have to bear a significant loss in FY21 but its three-year EBITDA, CAGR would be about 20 per cent.

While Trent’s revenues grew by around 30 per cent year-on-year in the first three quarters of FY20, results for the last two quarters have understandably been marred by the pandemic. Revenue growth dropped to 8 per cent in the March quarter. The June quarter saw revenues decline by a whopping 87 per cent. Hereon, a delay in revival in discretionary spending is a chief concern.

Muted near-term earnings outlook may well keep meaningful upsides at bay in the stock, which has recovered smartly from the lows in 2020. Even so, the shares are still nearly 15 per cent away from their pre-covid highs seen in February on NSE.

LATEST TOP NEWS
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

Festive season to boost pent-up demand: RAI

Festive season to boost pent-up demand: RAI

     At a webinar organized by the Retailers Association of India, retailer hoped to make up for their losses in the lockdown, with sales during the festival season. Arunkumar Nath, CEO, Levi... Read more

Spring-Summer Collections 2021 to fetch Rs 15,000 cr revenues: Analysts

Spring-Summer Collections 2021 to fetch Rs 15,000 cr revenues: Analysts

     As per industry analyst, the Spring-Summer collections 2021 -- between February and June --- will fetch the industry at least Rs 15,000 crore, higher than the Rs 10,000 crore of... Read more

Designers face new reality as they ramp up business model

Designers face new reality as they ramp up business model

  Every year countless small, independent designers and brands across the country eagerly wait for two of India’s biggest shopping weeks the India Fashion Week and Lakme Fashion Week. However, this... Read more

Online shoppers to increase to 70% this festive season: RedSeer Consulting

Online shoppers to increase to 70% this festive season: RedSeer Consulting

     COVID-induced online adoption will be driving the rise of internet shoppers this festive season. According to a RedSeer analysis, there would be around 70 per cent increase in online shoppers... Read more

Indian e-commerce to hold 8% share in retail by 2025

Indian e-commerce to hold 8% share in retail by 2025

     According to a recent report by e-commerce SaaS platform Unicommerce, Indian e-commerce is growing at a steady pace and is projected to hold an 8 per cent share in the... Read more

Domestic retailers eye festive season as online sales and relaxations boost dema…

Domestic retailers eye festive season as online sales and relaxations boost demand

  AUDIO:  Your browser does not support the audio element. Ratings agency Icra estimates Indian apparel exports will decline 20-25 per cent in 2020-21. Due to the COVID-19 pandemic, the agency expects... Read more

COVID-19 changes Indian e-commerce as players break language, service barriers

COVID-19 changes Indian e-commerce as players break language, service barriers

  AUDIO:  Your browser does not support the audio element. Nothing can dampen Indian festive spirit. Despite COVID-19 triggering an economic slump, retailers expect this year’s festive season to be a boom... Read more

Average monthly rentals in Delhi’s upscale retail locations decline by 14%

Average monthly rentals in Delhi’s upscale retail locations decline by 14%

     According to Cushman & Wakefield, the average monthly rentals in Delhi's upscale retail locations of Khan market, South Extension and Connaught Place declined by 14 per cent year-on-year during the... Read more

Brands, retailers seek a phygital growth model amid COVID-19 crisis

Brands, retailers seek a phygital growth model amid COVID-19 crisis

    Realizing the significant impact that COVID-19 crisis will have on their businesses, Indian retailers are seeking new capabilities to leverage the phygital business model. Combining the advantages of both the... Read more

The green advantages of digital fashion shows

The green advantages of digital fashion shows

    Though the pandemic has led to a 45 per cent dip in luxury sales, it has also given the $2.5 trillion global fashion industry an opportunity to tap the potential... Read more

MOST POPULAR NEWS
Go to top

Follow Us On:

Face BookDealersForYou

TWDFUpublications

LNDFUpublications

YouTubeDFUpublications

 Copyright © 2020 DFU Publications. All rights reserved.