Arvind Brands expects demand to bounce back by next year
For the full year, the company estimates growth of 14-15% for its retail business with improvements in margins in the brands and retail segment
Bengaluru: Apparel retailer Arvind Retail Ltd expects consumer demand to bounce back only by next year, said a top executive.
Buoyancy hasn’t returned to the retail market as had been expected, “and that is reflecting not just in apparel, but in all retail categories that are under pressure," according to J. Suresh, managing director and chief executive at Arvind Lifestyle Brands Ltd and Arvind Retail Ltd.
“We all expected that this (coming) festival season it will be better—but looks like it will be more next year than this year," added Suresh in an interview on Thursday, suggesting that the economy may experience a lift only starting next year.
On Thursday, Arvind Textiles Ltd posted a 36% drop in net profit to ₹ 58 crore for the quarter ending 30 June. Net sales at the company’s retail and brands business, which accounts for 28% of the company’s turnover, were up by 14% to ₹ 527.96 crore from ₹ 462.87.
The retail business’s loss widened in the June quarter to ₹ 7.05 crore from ₹ 2.02 crore.
“We’ve done reasonably well, considering the overall economic environment," Suresh said.
For the full year, the company estimates growth of 14-15% for its retail business with improvements in margins in the brands and retail segment, it said in a statement to the BSE on Thursday.
During the quarter, the company opened the county’s first store for American fashion label GAP and announced a licensing deal with American teenage apparel brand Aeropostale.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!