India's Arvind Fashions posts earnings rise as affluent consumers splurge on clothing
The retail chain, which also houses brands such as Arrow and Flying Machine, said its core earnings climbed to 1.48 billion rupees ($17.08 million) during the first quarter from 1.23 billion rupees a year ago.
Its revenue increased 16% to 11.07 billion rupees in the three months ended June 30.
Affluent Indians have been splurging on everything from Lamborghini cars to $18,500 smart toilets, helping premium brands stay resilient amid a broader slowdown in consumer spending caused by sluggish wage growth.
Arvind Fashions, which already targets the more affluent consumers with prices well above brands such as Vero Moda and H&M, is making a push into higher-priced apparel and accessories, helping it defy the broader retail slowdown.
The retailer, which posted an 8.5% revenue growth a year ago, is targeting a 12%-15% increase in fiscal 2026, helped by new store openings, higher marketing spends and broader reach through its online platforms.
PEER COMPARISON
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
APRIL TO JUNE STOCK PERFORMANCE
-- All data from LSEG IBES
-- $1 = 86.6620 Indian rupees
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