Gross Margin Expands 480bps At Arvind Fashions In Q3FY’24
Gross margin expanded 480 basis points (bps) year over year to 53.3 percent at Arvind Fashions in the fiscal quarter ended December 31, 2023.
According to an Arvind Fashions press release, this improvement was driven by a 2 percent retail like-to-like growth, enhanced execution in the retail channel, and a strategy of lower discounting.
The apparel retailer posted a 5 percent increase in revenues for the three months to December 31, 2023 at Rs 1,125 crore up from Rs 1,073 crore in the comparable quarter of the previous fiscal.
EBITDA at the company rose 18 percent totaling Rs 150 crore in the reporting period as against Rs 127 crore in the three months ended December 31, 2023.
Profit after tax from continuing business, excluding exceptional items grew by a staggering 83 percent from a year ago quarter to Rs 22 crore.
However, reported profit after tax soared more than six fold to Rs 51 crore in the quarter under review vis-à-vis Rs 8 crore in same quarter of previous fiscal.
“Strong financial performance in this quarter reflects the focus on profitable growth with 150 bps improvement in EBITDA, a growth of 18 per cent over same quarter last fiscal,” CEO Shailesh Chaturvedi said.
“The leadership of our key brands is getting strengthened with our conscious investment in marketing along with product innovation which has yielded differentiated results and market share gain,” he added.
During the quarter, AFL sold its Sephora business to Reliance Retail for Rs 94.28 crore, while Arvind Beauty Brands Retail Ltd (ABBRL) ceased to be a subsidiary.
Arvind Fashions is a licensee of global brands like U.S. Polo Assn., Arrow, Tommy Hilfiger and Calvin Klein.
