Leading Indian textile conglomerate Arvind Fashions Ltd. (AFL) has faced consolidated net loss of Rs. 66 crore (US $ 9.1 million) in Q3 of the current fiscal year as against Rs. 48 crore in the same period of last fiscal.
The company, having brands like Calvin Klein, Tommy Hilfiger, and US Polo Assn., saw its sales revenue during the said quarter touch Rs. 911 crore, as compared to Rs. 1,062 it had posted in the corresponding period last year.
“Better-than-expected sales recovery through improved footfalls during the festival period has resulted in significantly improved profitability and cash breakeven for continuing business in Q3 FY21,” said J. Suresh, company’s MD and CEO.
The company’s focus on digital and omnichannel initiatives and a deep cost focus continue to deliver robust outcomes. At the back of strong Q3, it expects H2 FY21 to be significantly better in terms of sales and profitability growth.
The company also has plans to raise Rs. 200 crore to strengthen its balance sheet this year.
It is also pertinent to mention here that the Arvind Fashions has seen a structural shift in demand to online as the company’s online sales are at 230 per cent of last year. Soon, as a company, it will have Rs. 1,000 crore of sales in the digital channel.
The offline sales have come back at more than 70 per cent of pre-Covid levels.
In an interview to ET, Kulin Lalbhai, Director of the company, said “Our online sales are at 230 per cent of last year which means it has more than doubled and because we have had such a large increase in sales, the operating leverage has kicked in.”