In an otherwise subdued consumer market, Trent said its key initiatives including with respect to the product offer, the store portfolio and the operating supply chain helped deliver encouraging results.
“The change in revenue profile across our concepts remains broadly in line with our strategic objectives and plans. The gross margin profile of Westside and Zudio remains consistent. Overall, the Operating EBIT margin for Q2FY25 was 10.8% (9.8% for Q2FY24),” Trent said in a release.
In Q2FY25, its fashion segment registered double-digit like-for-like growth. Emerging categories, contribute to over 20% of its revenues, like beauty & personal care, innerwear and footwear continued to gain traction with customers.
“We now operate with a significant portfolio of over 800 “large-box” fashion stores. In Q2 we continued to deepen and expand our store footprint across concepts, with presence now across 184 cities,” it said.
As of September-end Trent’s store portfolio included 226 Westside, 577 Zudio and 28 stores across other lifestyle concepts.
During the quarter, it opened 7 Westside and 34 Zudio stores (including 1 in Dubai) across 27 cities. The company also consolidated 9 Westside and 16 Zudio stores.
The Star business, consisting of 74 stores, including the addition of 2 stores during the quarter (8 in H1FY25), registered operating revenue growth of 27% in Q2FY25 with like-for-like growth of over 14%.
The business continued to witness all-round improved operating performance, driven by our own brands, staples, fresh & our general merchandise offerings which now contribute to over 73% of revenues, it said.
“Consumer sentiment has remained relatively muted. This coupled with seasonality has meant that retail businesses have faced headwinds. In the forgoing context the team has delivered strong results across brands, concepts, categories and channels in Q2,” said Trent Chairman Noel N Tata.
He said the team has applied Trent’s playbook to the Star business and are witnessing strong customer traction.
“The success of own branded products augurs well for the Star business. We are confident that this business is well poised to shift gears and deliver substantial value to customers and shareholders,” Tata said.
Following the announcement of the results, Trent shares were trading around 4% lower at Rs 6,650 on BSE.