Arvind Fashions

By Praveen Paramasivam and Chandini Monnappa

CHENNAI/BENGALURU, June 8 (Reuters) - From smaller packs on shelves to higher prices at checkout, Indian companies are scrambling to protect their margins as surging oil, freight and insurance costs - and strained household budgets - pile on pressure.

The U.S.-Israeli war on Iran has disrupted trade routes and lifted input costs globally, hitting import-reliant economies like India harder, where a weaker rupee is adding to inflation and complicating pricing decisions as demand remains uneven.

"We are among the world's most vulnerable countries," economist Jayati Ghosh said, warning higher oil and fertiliser costs, weaker Gulf demand, softer remittances and potential capital outflows could stoke inflation and slow growth.

Consumer goods makers Hindustan Unilever HLL.NS, Godrej Consumer Products GOCP.NS and Dabur India DABU.NS have already rolled out low- to mid-single-digit price hikes across categories, with Britannia BRIT.NS preparing similar moves.

Pricing power remains weak in mass segments, with companies holding the line on 10- to 20-rupee (11- to 21-cent) packs and shrinking product sizes instead of raising prices outright.

"We are reducing grammage because we can't breach those price points," said Mohit Malhotra, global CEO at Dabur.

Automakers Maruti Suzuki MRTI.NS, Mahindra & Mahindra MAHM.NS, Tata Motors Passenger Vehicles TAMO.NS and Hyundai Motor India HYUN.NS have also hiked prices.

"We were left with no choice," said Partho Banerjee, Maruti's senior executive officer for marketing and sales, adding that raising prices was not good for customers, especially first-time buyers.

Airlines IndiGo INGL.NS and Air India are trimming capacity, especially on fuel-heavy international routes, and increasing fares to offset higher aviation fuel costs.

Consumers are feeling the squeeze.

"I have no family to feed, no school fees, and no monthly payments on a car. I'm still watching my spending as prices are up for almost everything, from travel to packaged food," said Aditi Anjana, a Mumbai-based communications professional who is in her 30s.

BELT-TIGHTENING MODE

With limited room to pass on costs, companies are turning inward and cutting costs to cushion margins.

Hindustan Unilever HLL.NS has cut advertising spend, while others are trimming non-essential travel and marketing costs.

"The scope for further cost-cutting is gradually narrowing," Axis Direct analyst Uttam Kumar Srimal said, adding prolonged commodity and fuel inflation could force sharper price hikes or margin hits.

Sectors with high global exposure, including aviation, oil and gas, chemicals, logistics and capital goods, may remain under margin pressure, said Shweta Rajani, associate director at Anand Rathi Wealth.

RESETTING SUPPLY CHAINS

Firms are also reworking supply chains to manage disruptions. Companies with Middle East exposure are rerouting shipments, diversifying sourcing, and shifting production.

Dabur, an Indian rival of Colgate-Palmolive, is using alternative routes via Egypt and Turkey, while packaged goods maker Britannia is bringing some production back home.

Some firms are also front-loading purchases and closely tracking demand to avoid overstocking, underscoring tighter working capital discipline.

Arvind Fashions ARVF.NS has advanced inventory buys to lock in costs and is relying more on local suppliers, while Tata Group retailer Trent TREN.NS is tweaking raw materials, packaging, and product development.

"My priority is not to take prices up," said Umashan Naidoo, head of customer and beauty at Trent, which offers Gen-Z-focused affordable trendwear through its brand ​Zudio.

($1 = 94.9450 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Chandini Monnappa in Bengaluru; Additional reporting by Surbhi Misra; Editing by Dhanya Skariachan and Himani Sarkar)

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** Shares of Arvind Fashions ARVF.NS jump 10.3% to 481.25 rupees

** Co posts Q4 consol net profit of 469.7 mln rupees ($4.9 mln) vs loss of 931.5 mln rupees year ago

** Q4 revenue rises 14.8% Y/Y to 13.65 bln rupees on strong growth in direct channels

** EBITDA margin improved by 50 bps to 13.9%, aided by higher full-price sell-through and lower retail discounting

** Trading vols over 4x the 30-day average

** YTD, ARVF down ~4%

($1 = 95.1350 Indian rupees)

(Reporting by Vijay Malkar)

(([email protected];))

Jan 28 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• DEC-QUARTER CONSOL NET PROFIT 255.7 MILLION RUPEES

• DEC-QUARTER CONSOL REVENUE FROM OPERATIONS 13.77 BILLION RUPEES

Source text: [ID:]

Further company coverage: ARVF.NS

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Dec 29 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• ARVIND FASHIONS LTD - ENTERS SHARE PURCHASE AGREEMENT WITH FLIPKART INDIA

• ARVIND FASHIONS LTD - SPA TO BUY 31.25% STAKE IN ARVIND YOUTH BRANDS

• ARVIND FASHIONS LTD - COST OF ACQUISITION FOR SHARES IS 1.35 BILLION RUPEES

Source text: ID:nBSE3HlQ6m

Further company coverage: ARVF.NS

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** Shares of Arvind Fashions ARVF.NS rise 6.5% to 514.50 rupees

** Clothing co's consolidated profit rose 30% from last year to 374.6 million rupees ($4.26 million)

** Avg rating of five analysts covering the stock is "strong buy", median PT is 728 rupees - data compiled by LSEG

** YTD, ARVF up nearly 4%

($1 = 87.8950 Indian rupees)

(Reporting by Abhirami G in Bengaluru)

(([email protected]))

By Aditya Kalra

NEW DELHI, Sept 4 (Reuters) - India's overhaul of consumer tax stands to make everything from soaps to luxury SUVs cheaper, but global fashion brands such as Zara, Levi Strauss LEVI.N and Lacoste have been spooked by higher levies on all apparel priced at more than $29.

The premium wear segment accounts for about 18% of an apparel industry worth $70 billion, says Datum Intelligence, spurred by a growing number of nouveau riche and brand-conscious youngsters in India.

The biggest tax reform in eight years by Prime Minister Narendra Modi's government cuts levies to 5% on garments costing less than 2,500 rupees ($29), but items priced above that figure now face a higher levy of 18%.

That will pile pressure on the likes of PVH Corp PVH.N, Marks and Spencer MKS.L, Gap Inc GPS.N, Under Armour UAA.N, Nike NKE.N, H&M HMb.ST and Japan's Uniqlo 9983.T.

Fashion companies worry about the impact of higher taxes on sales, since aspirational young people consider such purchases as a lifestyle upgrade, but remain sensitive to price, said two Indian garment executives dealing in foreign brands.

"Retail works on wafer-thin margins, and overheads like rents are extremely high," said the chief executive of a foreign garment brand operating in India, who sought anonymity for fear of government reprisal. "Growth that we were expecting earlier won't come now."

The official added, "This is not a luxury. The 2,500-rupee price point is basic now."

The higher taxes are also a double whammy for domestic garment makers whose thriving U.S. exports business is also reeling from President Donald Trump's tariffs of 50%.

India's reform has not only drastically cut consumption levies on daily essentials and consumer electronics, but dealt a surprise win on Wednesday for pricey SUVs, reducing their tax rate to a flat 40%, versus up to 50% earlier.

Carmaker Mercedes-Benz has been reporting record sales in recent months, as consumption surges.

The higher rate on apparel could spell the "death knell for the industry", the Clothing Manufacturers Association of India has said, as items costing more than 2,500 rupees are "consumed in large numbers by the common man and middle class".

Most of the 875 new arrivals listed on Superdry India's website, for example, are subject to the new 18% tax, with many jackets on offer priced upwards of $170 and shirts at $60.

On the Lacoste India website, men's T-shirts can cost as much as $99, with not one priced below $29, the new threshold for the higher tax, set to take effect on September 22.

TARIFF TO WEDDINGS

In press statements, the Association has flagged worries about the impact of the higher tax adding to the fallout from Trump's tariff salvo.

India's Arvind Fashions ARVF.NS for example, holds domestic franchisee rights for Tommy Hilfiger and Calvin Klein retail, but its affiliate, Arvind Ltd ARVN.NS, makes foreign brands for export to destinations including the United States, which has a share of roughly 30%.

The Arvind Group did not respond to a request for comment.

In India, foreign premium brands have been luring affluent youngsters by adding retail outlets and e-commerce offerings. Lululemon Athletica LULU.O plans to enter the market in 2026.

The tax hikes will also apply to apparel from luxury goods makers Louis Vuitton LVMH.PA, Dior DIOR.PA and Versace.

Some customers may opt for cheaper more tax-efficient purchases while travelling abroad, but the hike to 18% from an earlier slab of 12% will have limited impact on India's rich, said one luxury industry executive.

Another area of expenditure set for a hit will be clothes bought for weddings. Lavish marriage celebrations are big business, and urban families can easily spend thousands of dollars on items from traditional sarees to men's jackets.

"Putting these clothes in the 18% slab will result in parents compelled to make inferior clothing for their favourite child on their favourite day," the clothing association said.

(Reporting by Aditya Kalra; Additional reporting by Dhwani Pandya and Praveen Paramasivam; Editing by Clarence Fernandez)

((Email: [email protected]; X: @adityakalra;))

** Shares of Arvind Fashions ARVF.NS rise 8% to 540.5 rupees, their highest level since late-December

** Co, which retails Calvin Klein and Tommy Hilfiger brands in India, posted a 20% y/y rise in first-quarter core profit, as new store openings and a focus on higher-priced apparel helped

** About 1.2 million shares traded, 3x the 30-day avg

** Stock rated "strong buy" on avg, median PT at 672 rupees - data compiled by LSEG

** Year-to-date, stock up ~5%

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

March 10 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• ARVIND FASHIONS LTD - TO EXPAND CLUB A STORES ACROSS INDIA

Source text: ID:nBSE8nmQMS

Further company coverage: ARVF.NS

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Feb 5 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• ARVIND FASHIONS Q3 CONSOL PAT 280 MILLION RUPEES

• ARVIND FASHIONS Q3 CONSOL REVENUE 12.03 BILLION RUPEES

Further company coverage: ARVF.NS

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** Shares of Shoppers Stop SHOP.NS rise as much as 8.7% to 674.2 rupees, highest since Nov. 5, currently up 8.1%

** The department store chain said Q3 consol net profit up ~41% Y/Y, snapping two consecutive qtrly losses

** Rev from ops up 11%, aided by strong demand for premium category

** Nearly 230,000 shares change hands, 1.5x its 30-day avg

** Nine analysts covering the stock, on avg, have a "hold" rating vs "buy" rating on rivals Tata Group-owned Trent TREN.NS and Arvind Fashions ARVF.NS, while Aditya Birla Fashion and Retail ADIA.NS rated "sell"- LSEG data

** SHOP up 10% so far this month; it fell ~24% in Q3

($1 = 86.5590 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru)

(([email protected] ; ( +91 8078332441))

** Shares of Arvind Fashions ARVF.NS rise 3.7% to 522.60 rupees, set for their best day since early Sept

** Equirus Securities starts with "long" rating and Street-high PT of 753 rupees

** Brokerage likes ARVF's margin expansion in last few years since it exited loss-making brands

** Says profitability should improve materially as benefits of last three years' corrective actions bear fruit

** Expects ~178 bps rise in operating margin and 33% profit CAGR over next 3 years

** Says with return metrics expected to improve, stock's current 10.5x EV/EBITDA makes it "attractive"

** Analysts' avg rating on ARVF rate is equivalent of "strong buy" - LSEG data

(Reporting by Nandan Mandayam in Bengaluru)

(([email protected]; Mobile: +91 9591011727;))

Oct 28 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• ARVIND FASHIONS Q2 CONSOL PAT 300 MILLION RUPEES

• ARVIND FASHIONS Q2 CONSOL REVENUES 12.73 BILLION RUPEES

Further company coverage: ARVF.NS

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** Shares of Arvind Fashions ARVF.NS climb as much as 2.7% to 548 rupees, last up 1.2%

** Brokerage Anand Rathi keeps "Buy" rating, ups TP to 689 rupees from 632 rupees earlier; at 29% premium on last close

** TP at Street high among five brokerages covering the stock, per LSEG data

** Anand Rathi analysts say co's focus on premiumisation across brands is key for growth prospects

** Says co's 21.6% y/y sales growth in FY24 was led by premiumisation, citing ARVF's FY24 annual report

** Sees higher retail channel mix, reduced gross working capital as key upsides

** Analysts avg rating on stock is "Buy", median PT is 585 rupees

** Over 1.9 mln shares traded, 2.5x the 30-day avg

** Including session's gains, stock up ~22% YTD

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

** Shares of Indian textile companies and garment makers surge between 3-11%

** Welspun Living WLSP.NS climbs 9%, Trident TRIE.NS up 8%, Gokaldas Exports GOKL.NS jumps 11%

** KPR Mill KPRM.NS rises 6%, Arvind ARVN.NS gains 4.3%, Arvind Fashions ARVF.NS is up 3.5%, Go Fashion GOFA.NS gains 3%

** Political unrest in Bangladesh is expected to disrupt the country's clothing industry, potentially affecting global apparel retailers

** Bangladesh was the third-largest clothing exporter in the world last year

** There are some hopes that because of political unrest, big brands outsourcing their manufacturing in Bangladesh may see India as an option - Pratik Tholiya, analyst with Systematix

** Some of the business may come to India. But, the manufacturing setup in India is not as robust as Bangladesh - Tholiya

(Reporting by Sethuraman NR in Bengaluru)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

Aug 1 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• ARVIND FASHIONS Q1 CONSOL NET PROFIT 13.2 MILLION RUPEES

• ARVIND FASHIONS Q1 CONSOL REVENUE FROM OPERATIONS 9.55 BILLION RUPEES

Source text for Eikon: [ID:]

Further company coverage: ARVF.NS

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** Shares of department-store chain Shoppers Stop SHOP.NS are down nearly 4% to 788 rupees

** SHOP posted a loss of 227.2 mln rupees ($2.72 mln) in Q1, its first in nine quarters

** Rev growth slowed down to 7.6% from 13.3% in the Jan-Mar period

** Stock set to post fourth straight session of losses; it dropped nearly 4% in last three sessions

** SHOP avg rating is "hold" compared to "buy" for Trent TREN.NS and "strong buy" for Arvind Fashions ARVF.NS - LSEG data

** SHOP's 14% YTD rise is lesser than ARVF's 20% rise and TREN's 71.5% gain

($1 = 83.6300 Indian rupees)

(Reporting by Nishit Navin)

(([email protected];))

May 21 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• MARCH-QUARTER CONSOL NET PROFIT 243.2 MILLION RUPEES VERSUS 109.1 MILLION RUPEES

• MARCH-QUARTER CONSOL REVENUE FROM OPERATIONS 10.94 BILLION RUPEES VERSUS 10.55 BILLION RUPEES

• OVERALL MARKET ENVIRONMENT CONTINUED TO STAY SUBDUED

• DELAYED WEATHER IMPACTING SEASONALITY & CONSUMER BUYING PATTERN

Source text for Eikon: ID:nNSEbhdTZm

Further company coverage: ARVF.NS

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BENGALURU, April 29 (Reuters) - India's Shoppers Stop on Monday reported nearly a 53% rise in fourth-quarter profit, helped by demand in its beauty segment as well as luxury products.

The early start of end-of-season sales and events like Valentine's Day drove heightened sales volumes, while high-income urban consumers favoured luxury makeup and fragrances for social and professional engagements, further boosting top-line growth.

The Mumbai-based chain reported a profit before exceptional item and tax of 300.7 million rupees ($3.60 million) for the three months ended March 31, compared with 197.1 million rupees a year earlier.

It also recorded an exceptional item of 15.9 million rupees in the quarter.

Shoppers Stop, which sells products of brands like Swarovski, Versace, Michael Kors and Bobbi Brown, said its revenue from operations rose 13.3% to 10.46 billion rupees.

Peer Tata Group-owned Trent TREN.NS reported a five-fold jump in quarterly profit, while Arvind Fashions ARVF.NS and Aditya Birla Fashion and Retail ADIA.NS are yet to report results.

Shares of Shoppers Stop closed 0.6% higher ahead of the results. They rose 9.3% during the March quarter.

($1 = 83.4614 Indian rupees)

(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Sohini Goswami)

(([email protected]; +91 8805175330 ;))

BENGALURU, Feb 13 (Reuters) - India's Arvind Fashions ARVF.NS, which retails clothing from brands such as Arrow, Calvin Klein and Tommy Hilfiger, reported a slowdown in revenue growth in the key holiday quarter and warned that any improvement would only come next quarter.

The company's shares tumbled nearly 9% after the results, in their biggest intra-day slide in five weeks.

Arvind Fashions' consolidated revenue rose about 5% to 11.25 billion rupees ($135.5 million) in the October-December quarter. That was less than the 7% growth in the previous quarter and a 17% jump in the year-ago holiday quarter.

"Demand trends continue to remain soft," the company said in a statement and said it expects an improvement by the first quarter, which starts in April.

Retailers have grappled with subdued demand for over a year as inflation-weary consumers cut back on spending.

However, Arvind Fashions' profit from continuing operations rose 14% to 301.2 million rupees in the third quarter. That excluded a one-time gain of 348.2 million rupees from the sale of its unit, Arvind Beauty Brands.

The Bengaluru-based company said its premium brands such as Calvin Klein and Tommy Hilfiger pulled in customers, while its kids wear product sales jumped 15%.

Its rival Shoppers Stop SHOP.NS has reported a third consecutive fall in quarterly profit, although Tata Group-owned Trent's TREN.NS profit surged on strong festive-season sales.

Shares of Arvind Fashions fell as much as 9% after the results before recovering to trade down about 3%.

They have gained about 44% over the past 12 months, more than Shoppers Stop's 9% increase but well below Trent's 190% surge.

($1 = 83.0069 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sherry Jacob-Phillips and Savio D'Souza)

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BENGALURU, Feb 7 (Reuters) - Indian retailer and hypermarket operator Trent TREN.NS reported a more-than-two-fold jump in third-quarter profit on Wednesday, driven by robust demand during the festive period.

The Tata Group-owned company reported a consolidated net profit of 3.71 billion rupees (about $45 million) for the three months ended Dec. 31, from 1.55 billion rupees a year earlier.

Shares of the company rose 10% after the results.

A surge in apparel purchases during the festive period boosted Trent's revenues, which rose nearly 51% to 34.67 billion rupees, outpacing the about 42% rise in its total expenses.

The festive period in India typically spans from October to late November.

Trent opened five Westside and 50 Zudio stores during the quarter, boosting the store counts under these brands to 227 and 460, respectively.

Its peers Arvind Fashions ARVF.NS and Aditya Birla Fashion Retail ADIA.NS will report next week.

($1 = 82.9450 Indian rupees)

(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Mrigank Dhaniwala)

(([email protected]; +91 8805175330 ;))

** Branded retailer Arvind Fashions ARVF.NS deserves higher valuation, given portfolio of marquee brands, lean balance sheet, and ample room for margin expansion- Nuvama

** Brokerage calls stock a "long-term" recommendation

** Initiates with "buy" and street high TP 660 rupees

** TP represents 39% premium to current price; Median TP at 544 rupees; Stock up 0.8% at 475 rupees on Thursday

** Nuvama sees revenue/EBITDA CAGR of 12%/22% (ex-Sephora) over FY23–26 and EBITDA/PAT CAGR of 22%/91%

** Says U.S. Polo Assn, Tommy Hilfiger, Calvin Klein generating healthy operating cash flows

** ARVF gained 19% in 2023 and is already up 16% so far this month

** ARVF is rated "strong buy" along with peer Go Fashion GOFA.NS - LSEG data

(Reporting by Sethuraman NR)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

** Brokerage Antique Stock Broking starts coverage of India's Arvind Fashions ARVF.NS with a "buy" rating and TP of 565 rupees

** Says co, which retails brands like Arrow and Calvin Klein (CK), has "very strong portfolio" of brands in fast-growing casual wear category

** Focus over the next 2-3 years on scaling up existing brands and not new additions, ARVF well placed to revive Arrow, CK, Tommy Hilfiger and Flying Machine brands - note

** Adds optimism on the back of strong casual apparel market, CK's potential to turn into a power brand, corrective actions for improving supply chain and working capital

** Mean recommendation of 5 analysts is equivalent to "strong buy"; median TP is 505 rupees - LSEG data

** Stock last up 1.4%, taking YTD gains to over 26%

(Reporting by Hritam Mukherjee in Bengaluru)

(([email protected];))

BENGALURU, Nov 7 (Reuters) - India's Arvind Fashions ARVF.NS reported a 18.9% rise in the second-quarter profit on Tuesday, aided by healthy sales of clothing and footwear and as power brands helped it maintain wider margins.

The Bengaluru-based company's consolidated net profit rose to 216.6 million rupees ($2.60 million) for the quarter ended Sept. 30 from 182.2 million rupees a year earlier, sending its shares up as much as 8%.

While consumer demand continued to remain soft, Arvind Fashions' strong performance in the multi-brand outlet channel and tighter control over inventories resulted in higher profit, the company said.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved by about 50 basis points from a year ago, it added.

Fashion retailers have seen a shift in demand due to a delayed festive season, which for 2023, began late October.

Usually, the festive season aids companies clock higher annual sales as customers spend on clothes, accessories and footwear.

Arvind Fashions, which has a portfolio of owned and licenced international brands such as Arrow and Calvin Klein, said its consolidated revenue from operations rose 7% to 12.67 billion rupees in the September quarter.

Revenue from so-called power brands like US Polo and Tommy Hilfiger, which accounts for more than 80% of the total, rose 5%.

The company's emerging brands segment clocked a 19% jump in revenue while the footwear segment posted revenue growth of about 20%.

Last week, Arvind Fashions exited its Sephora India business as the company sold its beauty brands division to billionaire Mukesh Ambani's retail unit Reliance Retail.

Rival Shoppers Stop SHOP.NS last month reported a drop in the second-quarter profit.

Tata Group-owned Trent TREN.NS, that operates retail chain Westside, reported a near three-fold surge in profit on Tuesday.

($1 = 83.2600 Indian rupees)

(Reporting by Dimpal Gulwani in Bengaluru; Editing by Mrigank Dhaniwala)

(([email protected];))

** Arvind Fashions ARVF.NS jumps 11.5% in heavy volume on deal to sell its beauty brands

** Stock posts its biggest intraday pct climb since Sept 27

** Apparel retailer to sell its beauty brands division to Reliance Retail for about $26 mln

** ARVF was already up 2.4% before the news

** Reliance Industries RELI.NS has barely budged from its 0.3% gain before the news

** ARVF last up 7.3%, which flips stock to YTD gains of ~1%

** Stock set for its busiest trading day since Dec 2022

($1 = 83.2500 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

** Shares of Arvind Fashions ARVF.NS rise as much as 5% to 377.3 rupees, highest level since Nov 2

** Brokerage Systematix Institutional Equities initiates stock with "buy" rating; TP of 515 rupees

** Sustained product innovation, increased marketing spends helped ARVF premiumise key brands - Systematix

** Expect ARVF to retain leadership in cash generation and EBITDA/PAT growth, despite co's focus on profitable revenue growth raising fears of growth slowing in near term

** Flags prolonged slowdown in demand, enhanced competition,

failure to scale up focus brands as key risks

** More than 493,000 shares change hands by 11:12 a.m. IST, 1.6x the 30-day avg

** Stock up 8.6% YTD

(Reporting by Anisha Ajith in Bengaluru)

(([email protected];))

BENGALURU, Aug 10 (Reuters) - Arvind Fashions ARVF.NS, which houses brands such as US Polo and Calvin Klein in India, reported on Thursday a loss in the first quarter, pulled down by lacklustre demand as inflationary pressures prompted shoppers to tighten their purse strings.

The Bengaluru-based company's consolidated net loss widened to 164.3 million rupees ($1.98 million) for the three-month period ended June 30, from a loss of 5.1 million rupees a year earlier.

Shares of Arvind Fashions dropped nearly 7% after the results.

The retail company, which has a portfolio of owned and licenced renowned brands such as Sephora, Arrow, and Tommy Hilfiger, said its revenue from operations rose 4% to 9.57 billion rupees.

There was a slowdown in the online channel and consumption demand, the company said in a statement, but forecast that trends will improve gradually by the next festive season.

Revenue from the company's power brands such as US Polo and Tommy Hilfiger, which account for nearly 80% of overall revenue, rose 2%. Its emerging brands, which include Calvin Klein and Sephora, posted a 15% increase in quarterly revenue.

The footwear and kidswear segments witnessed year-on-year growth of 30% and 12%, respectively.

Rivals Tata Group-owned Trent Ltd TREN.NS, which operates retail chain Westside, beat first-quarter revenue estimates due to higher footfalls and store expansion, while Shoppers Stop Ltd SHOP.NS reported a 34% slump in its first-quarter profit as heavy discounts and investments to ramp up the business weighed.

($1 = 82.8200 Indian rupees)

(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Sherry Jacob-Phillips)

(([email protected]; +91 8805175330 ;))

May 30 (Reuters) - Arvind Fashions Ltd ARVF.NS:

• MARCH-QUARTER CONSOL NET PROFIT 109.2 MILLION RUPEES VERSUS PROFIT 7.8 MILLION RUPEES

• MARCH-QUARTER CONSOL REVENUE FROM OPERATIONS 11.4 BILLION RUPEES VERSUS 9.17 BILLION RUPEES

• DIVIDEND 1 RUPEE PER SHARE

Source text for Eikon: ID:nBSE65mKSZ

Further company coverage: ARVF.NS

(([email protected];;))

By Praveen Paramasivam

CHENNAI, April 27 (Reuters) - India's Shoppers Stop Ltd SHOP.NS on Thursday said it expects its revenue to grow in double-digits this fiscal year, as the department store chain aims to bring in more brands and add two dozen stores.

The retailer seeks to open between 10 and 12 department stores and a similar number of beauty stores in the year ending March 2024, after launching a combined 23 stores last fiscal, Chief Executive Venu Nair told Reuters.

It ended the previous fiscal year with 270 locations.

Shoppers Stop, which is spread across 52 cities, is focusing on opening department stores in new locations, mainly in non-metro cities, Nair said.

Several apparel and footwear chains including Metro Brands Ltd METB.NS and Arvind Fashions Ltd ARVF.NS, which sells Calvin Klein in India, are also doubling down on smaller cities to tap the growing middle class.

With brands scrambling for workers to charge their expansion, Nair said labour availability is "an area which needs to be kept an eye on," with Shoppers Stop employing 40-100 workers at each of its department stores and 8-10 workers at all of its beauty outlets.

The company is also sharpening its focus on its beauty business, acquiring the exclusive distribution for 15 brands last year to cash in on the growing demand for skincare and makeup products from consumers returning to their post-pandemic lifestyles.

Shoppers Stop last month signed a distribution deal with Japan's Shiseido Co Ltd 4911.T to launch its Nars Cosmetics in India.

However, Nair said sales in February and March were "muted," partly due to high inflation, although he said Shoppers Stop has recorded some improvements in the second-half of April.

He also added there could be some price cuts as apparel and textile raw material prices have come down in recent months.

Shoppers Stop on Wednesday swung to a quarterly profit, benefitting from demand for beauty products and higher margin private-label clothing.

(Reporting by Praveen Paramasivam in Chennai; Editing by Sonia Cheema)

(([email protected]; +91 867-525-3569;))