Metro Brands navigates headwinds as net profits in Q3 take a dip
Despite a 13 per cent dip in net profit in Q3, footwear giant Metro Brands remains upbeat, citing strategic moves and a thriving sneaker collaboration as key drivers for future growth. The company’s consolidated net profit declined to Rs 99 crore ($12.4 million) for the second quarter ending December 31, 2024, from Rs 113 crore in the same period last year. However, revenues climbed 6 per cent to Rs 635 crore, indicating a resilient demand despite the challenging market conditions.
Expressing satisfaction with the quarter’s performance, Nissan Joseph, CEO says, the company’s strategic approach has empowered us to navigate through these challenging times. A key highlight of the quarter was Metro Brands' partnership with global sportswear giant Foot Locker. This strategic alliance aims to elevate India's sneaker culture by offering diverse and trendy footwear options to cater to evolving customer preferences.
The company is confident of its ability to sustain this positive momentum and anticipate a robust performance in the upcoming months, adds Joseph, exuding optimism for the future.
Metro Brands' commitment to growth is evident in its aggressive store expansion strategy. The company opened 31 new stores during the quarter, bringing the total number of new stores added this fiscal year to 87. This expansion strengthens Metro Brands' physical presence and broadens its reach to a wider customer base.
While the dip in net profit may raise concerns, Metro Brands' focus on strategic partnerships, customer-centric initiatives, and physical expansion paints a promising picture for the future. The company's commitment to navigating challenging times and riding the wave of India's evolving footwear market positions them for continued success in the months and years to come.
