Zudio and Westside parent Trent Ltd. will share its earnings report for the first quarter of the current financial year on August 6, 2025. The Tata group major already reported 20 percent revenue growth in its business update amid a broad-based demand slowdown.
According to a Moneycontrol poll of five brokerages, Trent is likely to report a revenue growth of 20 percent year-on-year at Rs 4,793 crore, higher from Rs 3,992 crore reported during the same quarter last year.
Net profit is likely to come in at Rs 366 crore from Rs 342 crore from the corresponding quarter of the previous fiscal year, rising around 7 percent on-year.
The profit estimates of analysts polled by Moneycontrol are not in a narrow range, but they all predict a double-digit expansion in revenue for Trent following the apparel player's business update. The most optimistic estimate sees Trent’s profit rising 16 percent on-year, while the most pessimistic projection sees a rise of around one percent.
What factors are impacting the earnings?
The topline growth is likely to moderated amid rising competition from peers and weak demand sentiment, noted experts. In its Q1 business update, the firm's management reaffirmed their aspiration of 25 percent-plus growth for the coming few years, but the current run rate falls short of it.
"This forces us to re-evaluate the growth targets for the company and align the same with the current run rate. Underwhelming near-term growth prompts the downgrade to ‘hold’ as the current valuation is too demanding," the firm noted.
Store Expansion: It is anticipated that Westside and Zudio will expand their presence by adding between 0 and 1 new stores during the first quarter of fiscal year 2026. "Trent's store count of Westside/Zudio stand at 248/766, implying net addition of 0/1, which involved closure of 1/10 stores each of the formats individually," noted Nuvama Institutional Equities.
Margins: Margins are likely to soften, as per brokerages, given the Trent's strategy to capture market share and increasing competition.
Weak LFL growth: For the third consecutive quarter, Trent's like-for-like momentum is likely to
moderate to low-to-mid-single digit amidst preponement of Eid, rising competition and weak demand sentiment, said Equirus Capital.
Nuvama added, "We estimate LFL growth to be -4 percent. This would also be because of Trent's strategy of cannibalisation from newly opened stores near high-performing locations, a broader demand slowdown, geopolitical headwinds and the natural impact of a high comparative base."
What to look out for in the quarterly show?
Analysts will closely monitor demand and the commentary on demand trends in urband areas and tier-3 towns. They will also pay attention to store expansion plans.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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