Arvind Fashions Q2 profits soar 18.9%
08 November 2023, Mumbai
India's Arvind Fashions celebrated an 18.9% surge in second-quarter profits, driven by robust sales of clothing and footwear, with power brands contributing to wider margins.
Operational leverage
The Bengaluru-based firm saw its consolidated net profit climb to ₹216.6 million ($2.60 million) for the quarter ending Sept. 30, up from ₹182.2 million the previous year, propelling its shares up to 8%.
Despite soft consumer demand, Arvind Fashions' success in the multi-brand outlet sector and more efficient inventory management bolstered profits.
The company's EBITDA margin improved by approximately 50 basis points year-on-year. Fashion retailers experienced a shift in demand due to a delayed festive season, starting in late October for 2023.
About Brand
Arvind Fashions, housing brands like Arrow and Calvin Klein, reported a 7% increase in consolidated revenue, with power brands, such as US Polo and Tommy Hilfiger, contributing over 80% to the total, and emerging brands and footwear segments displaying significant revenue growth.
In a recent move, Arvind Fashions divested its Sephora India business to Reliance Retail, owned by billionaire Mukesh Ambani. Rival Shoppers Stop reported a decrease in second-quarter profits last month, while Tata Group-owned Trent, operating Westside retail chain, reported a nearly threefold profit surge on the same day.
