As ABFRL sees 11% sales growth in Q1, it continues with a vibrant retail strategy
The retail giant ABFRL experienced 11 per cent sales growth in across all its brands while online revenue grew 12 per cent over the same period of last year, totaling $385.7 million. However, this streak of performance needs to be taken cautiously for when it came down to bottom line, it inked a net loss of $19.6 million and consolidated EBITDA for the first quarter of this year was down by 29 per cent year on year and now stood at $42.6 million.
The EBITDA margin was 11 per cent. The company’s spokesperson stated as the company continues to invest in ethnic fashion and TMRW, the digital first house of brands as well as the not at par performance from Pantaloons were the mainstays for the company’s red-ink bottom line. However, Pantaloons added three new stores to its pan-India network.
All set for TMRW
In June 2022, the group announced the digital first TMRW, a customer-centric and D2C fashion platform and continues developing this project. Over the next three years, TMRW will acquire as well as incubate over 30 innovative, customer-obsessed brands. The venture will also enable multiple founders to operate within a synergistic 'house of brands' platform that share a common vision and shared capabilities. As per latest Q1 results, TMRW is on track adding value creation for its portfolio of brands through operational interventions. ABFRL’s ethnic business added 12 more stores and its branded businesses 28 more stores just in Q1.
New acquisitions sets the path
As ABRFL expands, the buzz is about ABFRL’s undertaking with Universal Sportsbiz, the company which manages brands including Wrongn and Single, with 350 outlets across India through Shoppers Stop and Pantaloon. Wrongn The inside story is that ABFRL is interested in taking over the hit brand Wrongn, inspired by Virat Kohli. Wrogn sells fashion apparels, footwear and accessories for men. Meanwhile in May 2023, ABFRL formally announced its acquisition of 51 per cent shares of TCNS Clothing for $ 202 million. TCNS Clothing owns W, Aurelia, Wishful, Folksong, and Elleven.
In the first week of August, ABFRL announced the formation of a new company with the iconic French fashion footwear brand Christian Louboutin, wherein each will hold equal shares and Louboutin’s current Indian business will be transferred through an asset transfer.
ABFRL employs over 30,000 people, and has a network of 4008 stores across 33,874 multi-brand outlets with 6837 points of sales in department stores across India. Its lifestyle brands include Louis Philippe, Van Heusen, Allen Solly and Peter England and the multi-brand format chain Pantaloons.
And while ABFRL is busy expanding physically through new retail outlets, it is also busy developing all its domestic and international portfolio of brands. However, all these expansive activities have not stopped its shares from falling. How the rest of 2023 plays out for ABFRL remains to be seen.