A report by well-known brokerage Edelweiss Securities says that India’s top retailers–across apparelwear and other categories –reported strong recovery in sales with overall revenues up 30 per cent.
The report mapped December quarter earnings of large, listed companies and well-known apparel retailers such as Aditya Birla Fashion Retail (ABFRL), V-Mart Retail, Shoppers Stop and few others.
The report says that the third quarter of FY22, on expected lines, was a record quarter for some (Page Industries and Trent Ltd.), with a full recovery for others (apparel retailers).
The third quarter of the current fiscal saw demand normalise for several retailers–as the COVID wave ebbed and shoppers returned to stores. However, an uptick in cases in the end of December as well as January once again paused recovery for retailers.
The report added, “We believe, while growth ahead may moderate, it will remain robust. Apparel retail saw the highest beat, driven by Trent and ABFRL as festive and marriage seasons turned in better than expected. Trent sustained its out-performance and record showing.”
It further added that the apparel retailers, as well as those selling innerwear, reported stable progress but the brokerage flagged near-term inflationary headwinds. This is especially true for value retailers.
