Making a significant turnaround from the Rs 18 crore loss registered in FY23, Decathlon India reported Rs 197 crore profit in FY24. However, the brand’s revenue growth remained modest, increasing by only 2.2 per cent to Rs 4,008 crore.
Operating on a direct-to-consumer model, Decathlon India designs, manufactures, and sells sports gear through its 90 retail stores and e-commerce platform. The company is mainly engaged in sale of sports products although it also earns Rs 58 crore from interest and other non-operating income.
Decathlon’s recent profitability is a result of the stringent cost-control measures implemented by the company. The brand reduced its procurement costs by 4.3 per cent to Rs 2,448 crore. It also decreased its overall revenues by 4.5 per cent to Rs 3,797 crore due to controlled spending on power, rent, advertising, and other operational costs.
In the next 3 to 5 years, Decathlon India aims to double its revenue to Rs 8,000 crore. However, the company faces challenges in maintaining growth in a consumer market that is not expanding as rapidly as anticipated.
While Decathlon has successfully established itself as a leading sports retailer in India, it now faces increased competition and needs to adapt to evolving consumer preferences, particularly in e-commerce. The company is exploring new strategies, including utilizing third-party channels, to reach a wider audience.
As Decathlon enters its 16th year in India, it may need to diversify its product offerings and explore new market segments to sustain its growth trajectory. The company's future success will depend on its ability to adapt to the changing market dynamics and continue to innovate.
