More Stories

Informist, Wednesday, Aug. 6, 2025

 

Please click here to read all liners published on this story

--Trent Apr-Jun net profit INR 4.23 bln
--Analysts saw Trent Apr-Jun net profit at INR 3.78 bln
--Trent Apr-Jun net profit INR 4.23 bln vs INR 3.42 bln year ago
--Trent Apr-Jun revenue INR 47.81 bln vs INR 39.92 bln year ago
--Trent Apr-Jun operating EBIT margin 11.4% vs 10.6% year ago
--Trent: Fashion portfolio Apr-Jun like-for-like growth in low single digits
--Trent Apr-Jun operating EBIT INR 5.37 bln vs INR 4.17 bln year ago
--Trent: Total Westside stores at 248 on Jun 30 vs 228 year ago
--Trent: Total Zudio stores at 766 on Jun 30 vs 559 year ago
--Trent Apr-Jun Star business revenue INR 8.69 bln vs INR 8.15 bln year ago

 

By Avishek Rakshit

 

KOLKATA – Muted like-for-like growth in its fashion portfolio from store operations led fashion retailer Trent Ltd. to report its lowest on-year revenue growth in 17 quarters in Apr-Jun and miss the Street's top line projections.

 

The company reported a 19.8% on-year growth in its revenue at INR 47.8 billion during the June quarter against the Street's estimate of 49.2 billion. However, the net profit increased 23.5% on year to INR 4.2 billion and beat the Street's projection of INR 3.8 billion.

 

The most important metric for the retail industry that compares sales between the same stores over time, Trent's like-for-like sales in the fashion portfolio grew in low single digit during the quarter under review. Although the on-year top-line growth was much lower than what Trent has been posting in the past several quarters, the company said that it was healthy, notwithstanding early onset of monsoon and geopolitical disruptions.

 

The change in revenue participation across concepts remains broadly in line with strategic plans, Trent said in a statement adding that the company's agenda has been to drive material reach and share of revenues across key markets. It is also evolving the quality of its store portfolio and is consciously increasing the density of its presence.

 

In the statement, Trent said that given the business model choices and the intent to drive share of revenue in key markets, it would be appropriate for the company to pursue revenue growth across comparative micro markets vis-a-vis just the performance of comparative stores.

 

"We believe building density of our presence in key markets allows us proximity and the ability to service our customers readily. Both Westside and Zudio now have the scale and reach and enjoy significant consumer awareness and love. We remain on track to build a sizable and scalable pure play direct-to-customer business in the context of the market size and opportunity," Noel N. Tata, chairman at Trent, said in the statement.

 

The company is increasing its presence to newer cities across tier 2 and tier 3 locations. In many of these locations, the consumer market is still emerging in terms of adoption of fashion trends and density of consumption. These markets offer substantial opportunities, Trent said, adding that it also expects these markets to evolve to maturity over differing time horizons.

 

Hence, the revenue profile and growth trajectory of these new stores in new markets may not be entirely comparable to those in metro cities. As of Jun. 30, the company's store portfolio included 248 Westside branded stores, 766 Zudio branded stores, and 29 stores across other lifestyle concepts spread across over 13 million square feet. The emerging categories, including beauty and personal care, innerwear, and footwear continued to gain traction with customers, Trent said, adding that these emerging categories contribute to over 21% of the revenues. In the year-ago quarter, Trent had 228 Westside branded stores and 559 Zudio branded stores.

 

In the digital sales space, online revenues grew by 35% on year and contributed to over 6% of Westside revenues. Trent said that its investments in technology and automation across multiple areas in recent years has aided its operating leverage.

 

The gross margin profile of Westside and Zudio remains consistent. "We believe given our approach with respect to merchandise sourcing, price architecture, distribution and our disciplines around inventory provisioning, the full year results are more representative of the health of the business," Trent said.

 

The company reported a 28.8% on-year increase in earnings before interest and tax at INR 5.4 billion during the June quarter with an EBIT margin of 11.4%. In the year-ago quarter, Trent's EBIT was INR 4.2 billion and EBIT margin was 10.6%.

 

The company's foods and beverage retail business Star, which operates 77 stores in 10 cities with a retail area of 1.3 million square feet, reported a top-line growth of 6.6% on year at INR 8.7 billion in the June quarter.

 

Wednesday, shares of Trent closed 0.7% higher at INR 5,356.50 on the National Stock Exchange. The company declared its financial results for the June quarter after trading hours. End

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.