The report states that value fashion players outperformed in the quarter with players having exposure to the east seeing benefits of early festive season
While emphasising that apparel companies delivered mixed results in the second quarter of the current fiscal year, a report has stated that the early Pujo season drove a significant demand uptick and higher footfalls, particularly in eastern markets.
A report by Nuvama Institutional Equities highlighted that value fashion players outperformed in the quarter with players having exposure to the east seeing benefits of early festive season. VMart and V2 have upped store addition guidance for the year.
The goods and services tax (GST) rate rationalisation introduced temporary supply chain disruption and led several players to destock wholesale. Premium retailers largely maintained strong LTL momentum. Aditya Birla Fashion and Retail or ABFRL’s Pantaloons achieved 7 per cent LTL growth as increased marketing investments drove growth. Arvind Fashion posted healthy 8.3 per cent LTL in the retail channel.
In the value segment, players with high concentration in eastern India reported revenue gains due to early Pujo. V2 Retail reported 23 per cent same-store sales growth (SSSG), reflecting strong momentum. V-Mart also benefited, reporting 11 per cent LTL growth. Shoppers Stop’s value format, Intune, reversed a Q1 double-digit decrease to achieve positive LFL growth.
“The GST rate rationalisation (effective 22 September) caused a significant operational transition. While expected to enable long-term growth, it created short-term upheaval. Vedant Fashions reported dispatches were hurt for 15 to20 days due to comprehensive system and barcode updates,” the report pointed out.
The report added that despite the overall festive boost, localised disruptions, particularly unseasonal rains in core Pujo markets (such as Kolkata and the Northeast) and political disturbances, partially moderated the shopping momentum for companies such as ABFRL and V-Mart. Management across sectors expressed confidence that H2 will be stronger than H1, driven by the wedding season and a likely demand recovery, it emphasised.
