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Informist, Thursday, Feb. 6, 2025

 

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--Trent Oct-Dec net profit INR 4.69 bln
--Analysts saw Trent Oct-Dec net profit INR 5.22 bln
--Trent Oct-Dec net profit INR 4.69 bln vs INR 3.44 bln year ago
--Trent Oct-Dec revenue INR 45.35 bln vs INR 33.12 bln year ago
--Trent Apr-Dec net profit INR 12.35 bln vs INR 7.82 bln
--Trent Apr-Dec revenue INR 125.62 bln vs INR 87.40 bln year ago
--Trent Apr-Dec operating margin 11.3% vs 9.78% year ago
--Trent: Westside opened 14 stores in Oct-Dec
--Trent: Zudio opened 62 stores in Oct-Dec
--Trent Oct-Dec operating EBIT margin 13.1% vs 13.3% year ago
--Trent: Westside total store count at 238 at end of December 2024
--Trent: Zudio total store count at 635 at end of December 2024
--Trent: Westside Apr-Dec revenue growth 43%, volume growth 39%
--Trent: Online revenue up 45%, now contribute over 6% of Westside revenue
--Trent: Star business added 8 stores Apr-Dec, now has 74 stores
--Trent Oct-Dec operating EBIT INR 5.86 bln, up 35% on year

 

By Avishek Rakshit

 

KOLKATA – Increasing store count and an uptick in fashion, beauty products and others, especially during the festive season, led Trent Ltd. to report a 37% on-year increase in its net profit to INR 4.7 billion in Oct-Dec. Sales also rose 37% on year to INR 45.3 billion. However, both revenue and profit missed the Street's estimates.

 

Shares of the company tumbled after the company missed estimates on revenue and profit. At 1518 IST, shares of the company traded 8.4% lower at INR 5,270.00 on the National Stock Exchange.

 

Trent had reported a net profit of INR 3.4 billion on revenues of INR 33.1 billion in the year-ago quarter.

 

The company's fashion portfolio registered high single-digit like-for-like growth. This is the most important metric in the retail industry which compares sales between the same stores over time. The beauty and personal care, innerwear and footwear portfolio, which accounted for 20% of total sales, also continued to gain traction with customers.

 

The revenue growth also came from new stores. The company opened 14 Westside stores and 62 Zudio stores in Oct-Dec. At the end of December, the company had a total store count of 238 Westside and 635 Zudio stores and another 34 stores across other lifestyle concepts operating across 201 cities in the country with a total area of 11 million square feet.

 

"We remain on track to strongly expand our reach and at the same time improve the quality of our store portfolio. The strong store opening program this year together with other levers keeps our growth journey on track," Trent Chairman Noel N. Tata said in a statement.

 

In the current financial year, Trent is optimising its store portfolio besides focussing on store expansion and like-for-like growth. The store optimisation programme involves upgrading or consolidating smaller footprint stores with newer stores in more attractive micro markets.

 

While store expansion is a key growth lever, maintaining the quality and physical aesthetics of stores and ensuring a consistent customer experience is equally an important objective, the company said. Trent currently has over 850 large fashion stores in the country and is selectively refreshing the portfolio in stores in line with the demand.

 

"Our fashion portfolio continues to be differentiated by disciplines and choices. The market opportunity associated with building brands and a pure play direct-to-customer business like ours remains immense," Tata said.

 

The joint venture Star opened eight new stores during Oct-Dec to take the total store count to 74 stores. Trent said Star stores witnessed all-round improved operating performance, driven by own brand sales, staples, fresh products, and its general merchandise offerings. The Star business registered operating revenue growth of 25% and double-digit like-for-like growth in Oct-Dec. Own brand sales accounted for 74% of the revenues from the Star stores during Oct-Dec, as against 69% a year ago.

 

The revenue growth, primarily from store expansion, like-for-like growth, and an uptick in the festive season in Oct-Dec, was higher than the 35% rise in total expenses. The company's investments in the supply chain and technology helped it optimise costs partially.

 

Trent's operating earnings before interest, tax, depreciation, and amortisation margin was 13.1% in Oct-Dec compared with 13.3% a year ago. The operating EBIT was at INR 5.9 billion, up 35% on year. The operating margin in Apr-Dec was 11.3% compared with 9.8% in the same period last year.

 

During Apr-Dec, the company's top line grew 44% on year to INR 125.6 billion and net profit increased 58% to INR 12.3 billion. Sales volume increased by 39% on year across stores during Apr-Dec. Online sales grew 45% during Apr-Dec and accounted for 6% of Westside's revenues.

 

Trent said its board has approved a proposal to sell 175,450 equity shares in its associate company Massimo Dutti India Pvt. Ltd. The decision was taken after Spain-based Grupo Massimo Dutti offered to purchase the shares at INR 1,182.6 each. Once the sale offer is completed, Trent's share in Massimo Dutti India will fall to 20% from the current 49%.

 

At 1518 IST, shares of the company traded 8.4% lower at INR 5,270.00 on the National Stock Exchange. End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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