Arvind Fashions expects apparel business to be back to normal by August
Arvind Fashions Limited expects the fashion segment to reach a full post-Covid recovery by August, 2021, as sales increase along with vaccine take-up.
Arvind Fashions, which runs brands in India including Tommy Hilfiger, Sephora, and Calvin Klein, saw its sales rise during the recent winter festive season and expects the trend to continue, ET Bureau reported.
“The launch of fall season collection in August is when business would be back to normal, led by the ongoing vaccination drive,” said Arvind Fashions’ new chief executive, Shailesh Chaturvedi.
“The fashion business is completely linked to social interaction driven by consumers visiting malls, department stores and flagship stores. We have already achieved 80% recovery September onwards. It is a fair assumption that six months from now, things will sort out as the fear of going to crowded places will fade with vaccination.”
As fashion was one of the worst affected sectors by the pandemic, Arvind Fashions had to exit several of its portfolio brands including Hanes, Gap, and The Children’s Place and plans to focus on its core brands this year. The business also made plans to raise Rs 200 crore ($30 million) in a rights issue.
“We need funds as growth in the business will be sharp and rapid compared to last year,” said Chaturvedi. “The growth funds may also help reduce our debt.”
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