Page Industries, the licensee of Jockey International‘s products in India, posted profits and revenues below expectations, citing elevated inventory expenses and subdued market demand as contributing factors.
The company reported an inventory cost of 364.6 million rupees, a significant shift from the negative 1.83 billion rupees in inventory value a year ago.
Total expenses decreased by only 0.5%, while raw material costs dropped by 12.6%.
Persistent inflation has led consumers to opt for cheaper alternatives, impacting the company’s top-line as well.
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According to data from LSEG, the Bengaluru-headquartered company, known for licensing the Speedo swimwear brand in India, saw its revenue from operations climb by 3.2% to 9.95 billion rupees. However, it fell short of analysts’ average predictions of 10.98 billion rupees.
The company stated that despite experiencing a temporary uptick during the festive season in the previous quarter, the retail sector continued to grapple with subdued demand throughout the fourth quarter.
The company also noted an increase in competitive intensity from both organized and unorganized sectors.
However, the company anticipates “significant” growth in the athleisure market over the next decade.
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Peer company Arvind Fashions reported a more than two-fold increase in profit, driven by steady demand for its diverse premium clothing portfolio, which includes both casual and formal wear.
Page Industries’ stock has dropped 10.6% in the March quarter and is down 7.6% year-to-date. It closed 2.1% lower on Thursday following the results.
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