On Tuesday, Arvind Ltd, a leading player in the casual and denim market, announced a decline in revenue for the fifth consecutive quarter. This downturn was influenced by lackluster prices of woven products and decreased demand for denim.
The Bengaluru-based company, known for its portfolio of owned and licensed international brands like Tommy Hilfiger and Calvin Klein, disclosed a 4.6% decrease in consolidated revenue from operations to 18.8 billion rupees during the December quarter.
The textile segment, constituting approximately 75% of the company’s total sales, experienced an 8% decline in revenue.
The decline in cotton prices, a crucial raw material, led the retailer to lower product rates compared to the levels observed a year ago.
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Additionally, the company noted a seasonal decline in volumes, attributing it to subdued demand in the denim category.
Arvind retails denim products under brands like U.S. Polo Association, Arrow, and Flying Machine.
Retailers, grappling with subdued demand throughout the fiscal year as inflation-weary consumers cut back on spending, have faced challenges in maintaining steady financial performances. Arvind has seen its revenue fall between 11% and 21% in the last four quarters.
During the reported quarter, the company experienced a 6.4% reduction in total expenses, contributing to a 9% increase in its consolidated net profit.
The company anticipates improved volume growth across its segments and robust margins in the March quarter.
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The advanced materials segment, responsible for producing fabrics and protective gear for construction work at Arvind, is anticipated to experience an export impact due to limitations in Red Sea freight movement.
After reaching a record high earlier in the day, shares reversed direction, trading down by as much as 2.6%.
Rival Shoppers Stop reported a third consecutive fall in quarterly profit earlier this month, as consumers spent less on clothes and cosmetics. Results from Tata Group-owned Trent are due to be reported next week.
