3 weeks ago

Trent misses Q1 estimates as store-led growth masks weak demand

Trent misses Q1 estimates as store-led growth masks weak demand
Trent misses Q1 estimates as store-led growth masks weak demand · livemint.com

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.

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

Sources

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