10 June 2023, Mumbai
Trent Ltd has achieved impressive results in its fashion brands Westside and Zudio during the financial year 2022-23, driven by store expansions and improved profit margins.
Thrive in FY 2022-23
Westside, the leading fashion brand, added 14 new stores, bringing the total to 214. It achieved a remarkable 4 percent Compound Annual Growth Rate (CAGR) in sales per square foot, reaching Rs 11,973. Westside also achieved a record-high Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin of 13 percent.
Zudio, Trent Ltd's popular fashion brand, experienced substantial growth with 119 net store additions, resulting in a total of 352 stores. Zudio achieved sales per square foot of Rs 18,000, with an estimated EBITDA margin of 4.7 percent.
Impressive Results
Trent, a Tata Group retail subsidiary, reported a significant improvement in Return on Invested Capital (ROIC) of 21 percent, up from 11 percent in FY 2020. This growth was primarily attributed to higher sales per square foot, reduced net fixed assets per square foot, and favorable tax rates.
Despite zero net store additions, the Zara joint venture showed an impressive 20 percent CAGR in sales per store between FY 2020-2023. Meanwhile, the Star Bazaar store network was streamlined to 63 outlets in FY 2023, down from 70 in the previous year 2021-22. The joint venture with TESCO sustained moderate losses.
