Metro Brands share price saw a decline by about 2 percent in early trade on August 2, a day after it announced its June quarter FY2024 earnings.
The footwear retailer reported a consolidated profit for the June quarter at Rs 93.5 crore, down by 11.6 percent from Rs 105.78 crore in the same quarter last year, impacted by the weak operating margin.
The total revenue of the company stood at Rs 582.52 crore, rising 14.6 percent from Rs 507.95 crore in the year-ago quarter.
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The E-commerce segment which contributes to 8% of its total revenue registered a year-on-year revenue growth of 63%. According to Brokerage firm Motilal Oswal, the revenue was in-line but added that Cravatex Brands Limited's (CBL) loss and high operating expenditure led to a 12% decline in the bottomline.
Metro Brands acquired Cravatex Brands Limited (CBL), a retail, brand licensing, distribution and sourcing company in October 2022. CBL which represents many international brands has an exclusive long-term license for the Italian sportswear brand FILA and also owns the sportswear brand Proline.
The earnings conference call is expected later today post which brokerages may revise their view.
In the quarter, the company added 27 new stores and closed 2 Fila stores (none Metro standalone stores) in the quarter. Currently, they are located in 182 cities with the addition of 8 new cities and a total store count of 789 (including 23 Fila stores).
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