09 November 2024, Mumbai
In Q2, FY25 ended Sep ’24, the standalone revenues of apparel retailer Trent increased by 40 per cent to Rs 4,036 crore.
However, revenue growth during the quarter missed the 50 per cent mark for the first time since Q4FY21, point out analysts from Nuvama Institutional Equities in a report on 7 November.
The closure of the company’s 25 stores including 16 Zudio and nine Westside stores capped its overall growth this quarter. As on Sep 30, 2024, the company owned 226 Westside stores, 577 Zudio stores and 28 stores across other lifestyle concepts.
Trent’s fashion concepts registered double-digit like-for-like growth during the quarter. Nonetheless, gross margin contracted by 50 basis points Y-o-Y to 44.2 per cent. This decline in the company’s gross margin could be attributed to higher mix of sales from Zudio.
However, Trent’s EBITDA margin remained flat at 15.9 per cent. Kotak Institutional Equities has trimmed its FY25-FY27 revenue forecast for the brand by 2-5 per cent.
