12 August 2023, Mumbai
Arvind Fashions, the parent company of renowned brands like US Polo and Calvin Klein in the Indian market, experienced a financial setback during the initial quarter of 2023.
Net loss widens
The company's net loss expanded to $1.98 million, a considerable increase from the $5.1 million loss recorded the previous year.
Revenue rises; However, there was a positive aspect as well, with a 4% rise in operational revenue, amounting to 9.57 billion rupees. The deceleration in consumer demand was primarily attributed to inflationary pressures, which led shoppers to be more cautious with their spending.
Mixed bag
Within the company's brand portfolio, its prominent labels such as US Polo and Tommy Hilfiger witnessed a modest 2% growth in revenue, while emerging brands like Calvin Klein and Sephora exhibited a more substantial increase of 15%. The segments associated with footwear and kidswear experienced remarkable year-on-year growth rates of 30% and 12% respectively.
Following the release of these financial results, Arvind Fashions observed a nearly 7% drop in its share value. The company expressed optimism, foreseeing a gradual improvement in demand as the next festive season approaches.
