Liberty Shoes expects revenue to fall by up to 45% in FY21 due to Covid-19
Footwear brand Liberty Shoes Limited expects its revenue to fall by up to 45% this financial year due to sales disruption and altered customer demand caused by coronavirus and the pan-India lockdown.
“The situation doesn't allow us to compare the business with last financial year... yet we will be 35-45% down in comparison with the last financial year results,” said Liberty Shoes’ executive director and promoter Anupam Bansal, the Press Trust of India reported. The brand reported a revenue total of Rs 650 crore ($97.7 million) for the 2020 financial year.
“Post pandemic there is a notable change in the buying pattern of the customer,” said Bansal. “The product which is need-based is getting more attention from the buyers... people are going for open sandals with washable feature more. Due to the lockdown and limited access of going out, the premium leather category is getting hit.”
Liberty Shoes’ premium leather product category usually contributes around 20% to its overall sales in terms of value. The brand foresees sales picking up again during the autumn/ winter season due to its festive and marriage seasons.
Although sales are down, Liberty Shoes’ e-commerce sales increased as a portion of total sales and now account for around 40% of sales, according to Bansal. Despite the current challenges coupled with a rise in production costs, the brand does not plan to increase its prices this year, said Bansal.
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