Trent’s revenue increased 19% to Rs 4,883 crore with a 9% increase in net profit at Rs 425 crore during the first quarter. The EBIT margin for the quarter was 11%, unchanged compared to a year ago.
During the quarter, Trent opened just one new Westside store to take the tally to 248 stores and added 11 Zudio stores to have a count of 766 doors of the mass-priced brand while it shut 10 Zudio stores
“We remain focused on evolving our differentiated consumer proposition that appeals to a wider audience across diverse markets. Notwithstanding continuing competitive intensity and interim trends, we believe an unwavering focus on being relevant to our customers and building resilience with our business model choices will, over time enable us to deliver significant value,” said Noel N Tata, chairman, Trent Limited.
The retailer said its agenda has been to drive material reach and share of revenues across key markets and it is evolving the quality of store portfolio and are consciously increasing the density of its presence in such markets. Given the intent to drive share of revenue in key markets, it would be appropriate to pursue revenue growth across comparative micro markets vis-à-vis just the performance of comparative stores, it said
The company is also adding presence in newer cities across tier 2 / 3 markets and many of these markets are still emerging in terms of adoption of fashion trends and density of consumption.Hence, revenue profile and growth trajectory of stores in newer markets may not be entirely comparable to those in metro cities.
“We believe building density of our presence in key markets allows us proximity and the ability to service our customers readily. We remain on track to build a sizeable and scalable pure play direct-to-customer business in the context of the market size and opportunity, said Tata adding that in its Star business, it continues to apply Trent’s playbook and the contribution of its own brands is now trending over 70% of revenues.