French sports retailer Decathlon has made a striking financial comeback, reporting a ₹197 crore profit in FY24 after incurring a ₹18.6 crore loss the previous year. The shift to profitability came despite a modest 2.3% rise in revenue, which stood at ₹4,008 crore compared to ₹3,920 crore in FY23.
Cost Control Drives Profitability
Decathlon’s turnaround was largely driven by aggressive cost management. The company’s total expenses dropped to ₹3,797 crore in FY24, down from ₹3,975 crore in the previous year. Key savings came from trimming expenditures in areas like utilities, rent, maintenance, advertising, technology, and logistics. Even procurement costs, which typically account for the bulk of its spending at 64.4%, saw a noticeable reduction.
This efficiency push significantly improved Decathlon’s financial health, reducing its spending to just ₹0.95 for every rupee earned. The company’s EBITDA margin climbed to 14.49%, while its return on capital employed (ROCE) rose to 17.79%, underscoring its improved profitability.
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A Strong Retail Network and Customer Focus
With 90 stores spread across India, Decathlon maintains a robust physical presence that complements its online operations. The brand’s direct-to-consumer (D2C) model allows it to oversee everything from product design and manufacturing to in-store experiences and digital sales.
Decathlon’s diverse product range covers popular categories like cycling, hiking, football, swimming, and running. By offering affordable, high-quality sports gear under its own private labels, the retailer has built a reputation for value and reliability. Its immersive store layouts, complete with trial zones and interactive experiences, continue to draw foot traffic and foster customer loyalty.
Non-Operating Income Adds to the Bottom Line
In addition to operational improvements, Decathlon’s earnings were bolstered by non-operating income. The company earned ₹58 crore in interest from investments, contributing to a total revenue of ₹4,066 crore. This financial boost further strengthened its position as one of the leading sports retailers in the country.
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With its renewed profitability, cost-conscious operations, and focus on customer engagement, Decathlon is well-positioned for sustained growth in the competitive Indian market.
