Arvind Fashions says 75% of its stores operational, revenue below pre-Covid levels

By: |
July 09, 2020 5:39 PM

Post-lockdown, the company has been progressively reopening its stores following due regulatory guidelines and safety and hygiene standard operating procedures (SOPs), and ensuring appropriate social distancing norms, it said.

 Actions have also been initiated to conserve cash by cutting down capex, reducing inventory levels, controlling immediate buys and bringing a strategic flexibility in the buying process, it added.Actions have also been initiated to conserve cash by cutting down capex, reducing inventory levels, controlling immediate buys and bringing a strategic flexibility in the buying process, it added.

Arvind Fashions Ltd (AFL) on Thursday said 75 per cent of its stores are operational now after the easing of lockdown relaxations, though footfalls and revenue remain well below pre-Covid levels.

Sharing an update on the impact of the pandemic on its business, the company said while in the short run there would be disruptions, it expects “the strength of its brands, coupled with launch of new relevant product and investments in digital and omni-channels will help it overcome the challenges and react to evolving situation faster”.

Post-lockdown, the company has been progressively reopening its stores following due regulatory guidelines and safety and hygiene standard operating procedures (SOPs), and ensuring appropriate social distancing norms, it said.

“Currently 75 per cent of our stores are operational, though footfalls and revenue remain well below pre-Covid levels. In the meantime, the company has invested behind and scaled up its digital and omni capabilities and good traction is being achieved in this important channel,” AFL said.

The company has a network of 1,290 stores, while it is also present across approximately 10,000 multi-brand outlets with more than 3,700 points of sales in department stores across India.

AFL said it has put in place a “comprehensive cost management plan that covers significant reduction in costs during the lockdown period and until sales normalise. In addition, structural reductions have been effected in the cost structure that will have the impact of reducing company’s breakeven levels by 35 per cent”.

Actions have also been initiated to conserve cash by cutting down capex, reducing inventory levels, controlling immediate buys and bringing a strategic flexibility in the buying process, it added.

On the outlook, AFL said as the market reopens post the lockdown, it is well-positioned to resume full operations at the earliest.

“With sharpened product portfolio suiting to customer requirements, entrenched distribution network along with capability build-up in analytics for demand planning and fulfilment as well as omni-channel, AFL is strongly placed to recover faster from the impact of ongoing pandemic,” it said.

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