Arvind Fashions’ sees sharp increase in Q3 revenues

Driven by Q-o-Q momentum on account of stronger festive season and winter shopping, along with increased footfalls across stores, the FY21 Q3 revenues of Arvind Fashions’ grew 106 per cent. Growth was further boosted by the company’s continued traction in online channel.

Overall revenues reached 86 per cent of last year levels with sales recovery trajectory being stronger across all channels. Its power brands achieved a sales recovery of 91 per cent with similar profitability compared to Q3 FY20. Its brand Unlimited achieved a positive EBIDTA for the quarter due to good sales recovery and the significant restructuring of costs

Sales from overall online channels increased 130 per cent while Direct to consumer online sales grew by 3.3x over last year .Focusing on digital and omni-channel initiatives, the company expects H2 FY21 to be significantly better in terms of sales and profitability growth.

Retailer of brands such as Calvin Klein, Tommy Hilfiger and US Polo Assn, Arvind Fashions is raising Rs 200 crore on rights basis to strengthen its balance sheet this year. The company will also utilize the funds for general corporate purposes, including working capital for growth.

The company also registered higher offline sales recovery in January over December. However, its product cost is estimated to go up in the fourth quarter due to sharp increase in cotton and yarn prices. The company will mitigate the margin pressure through price increase.