Arvind Fashions Limited on Tuesday posted profit for the fiscal fourth quarter at Rs 28.53 crore, up 27.5 per cent as against Rs 22.38 crore in the corresponding quarter of last year. It posted revenue from operations at Rs 1140.01 crore, up 24.4 per cent in comparison to Rs 916.70 crore in the fourth quarter of FY22, aided by sharp rigour on retail operations leading to robust retail LTL of 17 per cent and robust growth in other offline channels. The company EBITDA stood at Rs 124 crore, up 69.2 per cent on-year. “Power brands revenues registered growth of 26 per cent leading to strong improvement in EBITDA margins by 120 bps,” it said in the regulatory filing. The Board also recommended a dividend at 25 per cent, that is, Re 1 per equity share of Rs 4 each for the financial year ended March 2023.
“Our differentiated brand proposition across multiple categories and channels continued to attract robust consumer demand, resulting in the Company crossing the milestone of 4000 crore NSV and an improved financial performance across all metrics during FY23,” said Shailesh Chaturvedi, MD & CEO, Arvind Fashions.
In terms of retail channels, Arvind Fashions posted over 60 per cent and 50 per cent growth YoY in department stores and MBO channels respectively. The company registered 15 per cent of revenue mix from online wherein 75 per cent growth came in from direct to consumer business (marketplace and NNNow). “We continue to expand our reach across the country and remain excited about the future potential to capture significant growth opportunities that lie ahead along with sharper focus on improving profitability further and generate higher return on capital employed (ROCE),” said Shailesh Chaturvedi.
Arvind Fashions has a wide portfolio of brands – both international and indigenous, including US Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, Flying Machine and Sephora. US Polo Assn. continued to dominate in the casual lifestyle category with significant momentum in its journey towards 2000 crore NSV. Arvind Fashions posted sales of Rs 924 crore from its premium brands and Rs 216 crore from its emerging brands. Meanwhile, in terms of categories, footwear and kids wear businesses grew by +50 per cent ~25 per cent respectively during the quarter.
Arvind Fashions’ brand performance
US Polo Assn saw an annual growth of 600+ crore NSV in FY23 and ranked top most across multiple online portals and department stores. The company worked on multiple initiatives to premiumize the brand including better retail experience, product innovation and strong marketing efforts, along with focused investment in bottom wear leading to a strong growth YoY.
Arrow posted exceptional swings in sales growth and EBITDA profitability. Also, a focus on superior retail experience resulted in higher full price sell thru and reduction in discounting. Arrow posted growth in the MBO channel of 75 per cent for FY23.
Flying Machine is focusing more on young millennials and Gen Z with upgraded product designs, especially in jeans. It launched footwear categories across online channels. The brand saw improvement in full price sales in SS 2023 despite slowdown in the market.
Tommy Hilfiger posted growth in sales by nearly 50 per cent in FY23 with high profitability.
Calvin Klein saw over 35 per cent growth in sales and profitability in Q4FY23 and maintained market leadership in bridge to luxury segment in jeans, tees and innerwear segments.
Sephora, which has presence in 26 EBOs, is delivering industry leading sales density per sqft in malls across India.