 "December quarter results: Analysts expect tepid numbers")
Indian retailer Arvind Ltd posted on Tuesday a revenue drop for the fifth consecutive quarter, dampened by lacklustre prices of woven products and lower demand for denim.
The Bengaluru-based company, which has a portfolio of owned and licenced international brands such as Tommy Hilfiger and Calvin Klein, said its consolidated revenue from operations fell 4.6% to Rs 1,880 crore during the December quarter.
Revenue from the company's textile segment, which accounts for nearly 75% of total sales, dropped 8%.
A slump in prices of cotton, a key raw material, prompted the retailer to reduce product rates from year-ago levels.
There was also a seasonal downtrend in volumes, the company said, attributing to weak demand in the denim category.
Arvind sells denim products of brands such as U.S. Polo Association, Arrow and Flying Machine.
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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.
The company's total expenses fell 6.4% during the reported quarter, which aided it to accrue a 9% rise in its consolidated net profit.
The company forecast better volume growth across segments and healthy margins in the March quarter.
The advanced materials segment, through which Arvind makes fabrics and protective gears for construction works, is expected to face an impact on its exports from the restricted Red Sea freight movement.
Shares, which hit a record high earlier in the day, reversed course to trade as much as 2.6% lower.
Rival Shoppers Stop reported a third consecutive fall in quarterly profit earlier this month, as consumers spent less on clothes and cosmetics. Tata Group-owned Trent is due to report results next week.
