Zudio and Westside parent Trent Ltd. will share its earnings report for the fourth quarter of the previous financial year on April 29, 2025. The Tata group major is likely to report industry-leading revenue growth, maintaining its momentum in performance, as value fashion remains an outlier amid a muted consumption environment.
According to a Moneycontrol poll of six brokerages, Trent is likely to report a revenue growth of 34 percent year-on-year at Rs 4,275 crore, higher from Rs 3,187 crore reported during the same quarter last year.
Net profit is likely to come in at Rs 344 crore from Rs 654.3 crore from the corresponding quarter of the previous fiscal year, slipping 47 percent on-year. However, the March 2024 profit was a result of an exceptional one-time gain. Without the exceptional item included in the bottom-line, Motilal Oswal believes that the net profit is likely to grow a modest eight percent.
While the earnings estimates of analysts polled by Moneycontrol are not in a narrow range, they all predict a sharp fall in net profit, while estimating a healthy double-digit expansion in revenue for Trent. The most optimistic estimate sees Trent’s revenue rising 39 percent on-year, while the most pessimistic projection sees a rise of around 28 percent.
What factors are impacting the earnings?
The topline is expected to surge as a result of retail expansion in Zudio and healthy store productivity levels, noted experts.
Store Expansion: Healthy revenue growth is expected to continue due to store expansion. It is anticipated that Westside and Zudio will expand their presence by adding between 10 and 122 new stores during the fourth quarter of fiscal year 2025. Compared to H1, Trent is likely to report a significant increase in store additions in H2.
Margins Impacted: Nuvama Institutional Equities anticipates some gross margin softness due to product mix and an extended End-of-Season Sale (EOSS), a first for Trent. Lower productivity is
also expected to impact EBITDA margin.
Value Fashion: As consumers tighten their belts, the demand for premium lifestyle fashion has gone down, while value retailers are likely to see double-digit growth. A contrasting trend emerged, as premium players are expected to deliver subdued performance due to weak demand environment.
As a result, this will lead to healthy SSSG or same-store-sales-growth for Trent, along with strong footprint additions, said Elara Capital. On the flip side, Nuvama Institutional Equities believes that Trent appears to have been impacted by demand slowdown and competition.
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.
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