Rupa plans to open 16 exclusive outlets in high footfall areas
23 November 2022, Mumbai:
Rupa plans to open 16 exclusive brand outlets in the next four months. The innerwear and casual wear brand currently has 24 exclusive outlets and it is looking to strengthen its focus on modern trade channels even as it looks to grow turnover.
Modern trade outlets contribute 10 percent to the company’s total topline and have been clocking double-digit growth. Rupa’s expansion strategy continues in the quest to strengthen its retail footprint nationwide. The plan now is to open stores in high-footfall areas.
Rupa’s revenue from operations for the quarter ending September 30, 2022, was down by nearly 22 percent. The earnings before interest, taxes, depreciation, and amortization (EBITDA) margin stood at 10 percent as compared to 19 percent over the same period last year.
Rupa attributes the decline in EBITDA margin to volatile raw material prices that have impacted the gross margin as well as significant increases in marketing expenses.
The contribution to sales from its high-margin products, such as thermal and athleisure, has been much lower compared to last year. The company believes that as yarn prices look stabilized now demand will also pick up. So the recovery in the third quarter depends on the winter, which is more of a thermal season.