3 weeks ago
Trent misses Q1 estimates as store-led growth masks weak demand
Trent is a big clothing store company in India that is part of the Tata Group.
It sells clothes through brands like Zudio and Westside.
During the last three months, the company made more money than it did last year.
Its sales grew by about 18 percent and its profit grew by 22 percent.
However, people who watch companies closely expected it to make even more money than it did.
The growth happened because the company opened many new stores.
The money made at older stores stayed almost the same, which means fewer people were buying there.
Many of the new Zudio stores were opened in smaller cities instead of big ones.
The company's boss, Noel Tata, is going to retire this year.
Nobody has been chosen yet to be the new boss.
Trent Ltd's Q1FY27 revenue rose 17.8% year-on-year to ₹5,754.7 crore, missing the Bloomberg consensus estimate of ₹5,870 crore.
Consolidated net profit grew 22% to ₹518.1 crore, below analysts' expectations of ₹530 crore.
Growth was driven by store additions, including 22 new Zudio stores and one Westside store, taking the portfolio beyond 1,300 large-format fashion stores.
Like-for-like growth in the fashion business remained in the low single digits, indicating weak demand at existing stores.
Chairman Noel N. Tata is set to retire later this year after reaching the Tata Group's retirement age, with no successor announced yet.
- Who
- Trent Ltd, the Tata Group retailer led by chairman Noel N. Tata.
- What
- Reported Q1FY27 results with 17.8% revenue growth and 22% profit growth that missed analyst estimates, as store expansion masked weak demand at existing outlets.
- Where
- India, where Trent operates more than 1,300 stores across 330 cities, including seven Zudio stores in the United Arab Emirates.
- When
- For the quarter ended 30 June (Q1FY27), with shares closing Wednesday.
- Why
- Revenue growth was driven mainly by new store openings while like-for-like growth in the fashion business stayed in the low single digits.
Key facts
- Revenue (Q1FY27)
- ₹5,754.7 crore, up 17.8% year-on-year
- Net profit (Q1FY27)
- ₹518.1 crore, up 22% year-on-year
- Bloomberg revenue estimate
- ₹5,870 crore
- Analyst profit estimate
- ₹530 crore
- Stores added in quarter
- 22 Zudio stores and 1 Westside store
- Total store network
- 1,300+ large-format stores across 330 cities
- Zudio and Westside counts
- 982 Zudio stores (incl. 7 in UAE) and 301 Westside stores
- Star grocery network
- 86 stores across 12 cities
Quotes
Noel N. Tata
Chairman of Trent Ltd
“Our brands continue to represent only a small share of the overall addressable market, providing significant headroom for growth across geographies and customer segments. Our performance is anchored in our ability to offer relevant products, remain attuned to evolving customer preferences and respond with agility.”
livemint.com
“The business delivered encouraging performance during the quarter notwithstanding continuing macroeconomic volatility and geopolitical events.”
livemint.com










