Arvind Fashions On Tuesday reported an 18.9 per cent year-on-year (YoY) increase in second-quarter profit, attributing it to robust sales of clothing and footwear and sustained wider margins facilitated by power brands. The company’s consolidated net profit climbed to Rs 216.6 million rupees (USD 2.60 million) for the quarter gone by, compared to Rs 182.2 million rin the previous year.
Despite ongoing soft consumer demand, Arvind Fashions credited its strong showing in the multi-brand outlet channel and enhanced inventory management for the heightened profit. The earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin improved by approximately 50 basis points compared to a year ago.
Due to a delayed festive season that commenced in late October for 2023, fashion retailers have witnessed a shift in demand. Typically, the festive season boosts annual sales as customers invest in clothing, accessories and footwear.
Arvind Fashions, boasting a portfolio of owned and licensed international brands such as Arrow and Calvin Klein, reported a 7 per cent increase in consolidated revenue from operations, reaching Rs 12.67 billion in the September quarter.
Revenue from power brands like US Polo and Tommy Hilfiger, constituting over 80 per cent of the total, experienced a 5 per cent rise. The emerging brands segment witnessed a 19 per cent surge in revenue, while the footwear segment achieved approximately 20 per cent revenue growth.
Last week, Arvind Fashions divested its Sephora India business by selling its beauty brands division to Reliance Retail.
