09 February 2023, Mumbai
For the third quarter Aditya Birla Fashion and Retail’s profit fell by 92 per cent.
Soaring marketing expenses hit the apparel retailer. The period saw an increase in marketing investments post a hiatus of more than two years since Covid as the company reinvigorated its focus towards brand building and strengthening consumer connect.
Total expenses rose more than 31 per cent outpacing a nearly 20 per cent rise in revenue from operations. The Birla group company has been investing heavily to build its store presence by partnering with several local and international brands such as high-end wedding wear label Sabyasachi, French luxury retailer Galeries Lafayette and emerging local names Bewakoof and BerryLush.
Meanwhile, sales at its Madura Fashion and Lifestyle unit more than doubled. Revenue from the Pantaloons business, which the group bought from Future Group, rose about 8.7 per cent. Pantaloons was hit by sluggish growth in smaller towns, transient inflationary pressures in the value segment and a slip in sales after the Hindu festival of Diwali mid-November.
Aditya Birla Fashion and Retail which has an elegant bouquet of leading fashion brands and retail formats houses brands such as Allen Solly, Pantaloons and Van Heusen. Aditya Birla remains optimistic about the overall consumption of fashion products for the rest of the year.
