Arvind's Q4 profit climbs amid stable textile demand

Arvind Ltd reported a 2.1 per cent increase in fourth-quarter profit, buoyed by consistent demand for its textiles.

The clothing retailer, known for selling international brands such as Tommy Hilfiger, Arrow, and Calvin Klein, saw its consolidated net profit rise to Rs 99 crore from the previous year's Rs 97 crore.

To combat sluggish demand and restrained consumer spending, retailers like Arvind are swiftly offering products at discounts, though they are contending with slower volume growth due to heightened competition.

Arvind witnessed a 10.3 per cent uptick in revenue from operations, with its core textile segment, comprising nearly 72 per cent of total sales, growing by 5 per cent.

The company observed a rebound in denim sales during the quarter, alongside growth in garments and woven products sales. Additionally, its advanced materials segment, focusing on fabrics and protective gear for construction work, expanded by approximately 21 per cent.

Arvind remains optimistic about demand for the fiscal year 2025, citing inventory corrections, fresh order bookings, and new customer onboarding.

The retailer plans to increase its capital expenditure for new projects to Rs 400-450 crore and has approved a dividend of Rs 4.75 per share, including a one-time special dividend.

In the same quarter, competitors Shoppers Stop reported a 53 per cent profit increase driven by demand in its beauty segment and luxury products, while Trent, owned by Tata Group, saw a five-fold surge in quarterly profit, attributed to the expansion of its lower-priced Zudio brand stores.

(With Reuters inputs)