Bata India surges on report of strategic partnership with Adidas

Footwear maker Bata India’s stock rallied as much as 6.22 per cent to hit an intraday high of Rs 1,749 after media reports suggested that Bata India is entering into a strategic partnership with German apparel giant Adidas for the Indian market.

The stock was trading at Rs 1,737 per share, up nearly 5.50 per cent, at 12:41 pm.

Bata India, which houses brands like Hush Puppies and Scholl, may tie up with Adidas for the Indian market, according to a report by CNBC-TV18. 

The talks around the deal with Adidas are likely at an advanced stage with final deal contours in the works, the report said.

Bata India, the flagship of Netherlands-based Bata BN, has over 2,050 stores across the country.

Financial performance 

Bata India reported a standalone profit of Rs 108 crore, down 10 per cent against Rs 119 crore in the same quarter last year. Revenue rose 2 per cent annually to Rs 958 crore in the June quarter.

The company expanded its network to 2,100 stores in 700 cities in June quarter, with Franchise & SIS network consisting over 38 per cent. The company claims that the overall average selling price (ASP) grew by approximately 3 per cent on a year-on-year basis.

Bata’s distribution channel continued to scale up to over 1,390 towns.

On the company’s’ Q1FY24 performance, Gunjan Shah, MD and CEO of Bata India said, “With our strategy of casualisation and premiumisation, expansion in Retail Network and accelerated investment towards core technologies (ERP, Merchandising, etc.), we believe the template is set up for future profitable growth. Digital footprint through our omnichannel e-commerce revenue streams gained significant momentum in the quarter going by.”

As of 12:56 pm, Bata India shares traded 5.68 per cent higher at Rs 1,740, outperforming the Sensex which was down 0.7 per cent