(Reuters) -Arvind Fashions, which retails the Calvin Klein and Tommy Hilfiger brands in India, reported a 20% rise in quarterly core earnings on Monday, benefiting from new store openings and a focus on higher-priced apparel.
The retail chain, which also houses brands such as Arrow and Flying Machine, said its core earnings climbed to 1.48 billion rupees ($17.08 million) during the first quarter from 1.23 billion rupees a year ago.
Its revenue increased 16% to 11.07 billion rupees in the three months ended June 30.
KEY CONTEXT
Affluent Indians have been splurging on everything from Lamborghini cars to $18,500 smart toilets, helping premium brands stay resilient amid a broader slowdown in consumer spending caused by sluggish wage growth.
Arvind Fashions, which already targets the more affluent consumers with prices well above brands such as Vero Moda and H&M, is making a push into higher-priced apparel and accessories, helping it defy the broader retail slowdown.
The retailer, which posted an 8.5% revenue growth a year ago, is targeting a 12%-15% increase in fiscal 2026, helped by new store openings, higher marketing spends and broader reach through its online platforms.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div
growth (%) growth (%) rating* analyst price yield
s target** (%)
Arvind Fashions 40.00 10.35 11.69 681.78 Strong 4 0.77 0.25
Buy
Trent 80.56 46.66 28.32 27.69 Buy 14 0.85 0.10
Shoppers Stop 140.3 12.9 10.12 192.24 Hold 5 0.88 NULL
7
Aditya Birla NULL 10.53 -31.80 NULL Hold 15 0.53 NULL
Fashion and Retail
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL TO JUNE STOCK PERFORMANCE
— All data from LSEG IBES
— $1 = 86.6620 Indian rupees
(Reporting by Ananta Agarwal in Bengaluru and Praveen Paramasivam in Chennai; Editing by Sherry Jacob-Phillips and Shreya Biswas)
