Arvind Fashions net profit down 9 percent to Rs 21 crore
Arvind Fashions Ltd, the recently de-merged entity of Arvind Ltd, posted a net profit of Rs 21 crore ($3 million) for the fourth quarter ended March 2019 as against Rs 23 crore it had posted during the previous quarter ended March 2018.
The company’s revenue grew by 2 percent to Rs 1169 crore in the quarter as against Rs 1151 crore it had posted last fiscal.
For the financial year 2018-19, the company’s net profit jumped 66 percent to Rs 21 crore from the Rs 13 crore last year while its sales revenue increased 10 percent to Rs 4644 crore as against Rs 4219 crore it posted last fiscal.
Arvind Fashions saw strong performances across all its business segments including power brands, specialty retail, and emerging brands during the fiscal year.
The power brands segment which includes brands like US Polo Association, Arrow, Flying Machine and Tommy Hilfiger contributed Rs 2,797 crore to the overall revenue while specialty retail, comprising Unlimited, Gap and Sephora generated sales worth Rs 1110 crore.
The emerging brands segment which has Calvin Klein and Aeropostale grew 5 percent during the year adding Rs 737 crore to the overall revenue.
“During FY20, the company will remain focused on driving improved profitability, along with increasing discipline around cash generation, consolidation of Unlimited business and continuous evaluation of our brands portfolio to optimize returns in our strategy of growth and profitability for future,” the company said in a statement.
“Power brands and other selected brands will continue to grow with increased investments in both marketing and channel expansion including retail in tier 2 and 3 cities,” it added.
Arvind Fashions ended the year with a store count of 1,018 for its power brands and 107 Unlimited stores.
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