Latest news with #BrandConceptsLtd
Fashion Network
29-05-2025
- Business
- Fashion Network
Brand Concepts Ltd Q4 net profit declines 27 percent to Rs 1.31 crore
Brand Concepts Ltd, a luggage and accessories retailer reported a 27 percent decline in net profit to Rs 1.31 crore ($152,929) for the fourth quarter ended March 31, as against Rs 1.79 crore in the year-ago quarter. The company's revenue for the quarter rose by 13 percent to Rs 66 crore, as against Rs 58 crore in the corresponding quarter of the previous fiscal year. For the full financial year, the company's net profit stood at Rs 7 crore with a sales revenue of Rs 273 crore. During the financial year 2025, the company opened 9 new stores to end with a store count of 48 as of March 31, 2025. 'In spite of competitive pressure and margin disruptive selling by peers, we have improved our EBITDA margin (excluding ESOP expense) at 11.6 percent vs 10.2 percent last year,' Brand Concepts said in its investor presentation. 'Setting up of the manufacturing facility was initiated during the year and we have reached significant completion level with production trial currently underway at the new facility, marking the initial phase of operational readiness,' it added. Brand Concepts Ltd is an omnichannel fashion and lifestyle retailer with licenses for brands like Tommy Hilfiger, Aeropostale, and United Colors of Benetton. Its private label brands include Sugarush and The Vertical.
Yahoo
20-05-2025
- Business
- Yahoo
Brand Concepts Ltd (NSE:BCONCEPTS) Q4 2025 Earnings Call Highlights: Navigating Growth Amidst ...
Release Date: May 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Brand Concepts Ltd (NSE:BCONCEPTS) maintained decent topline growth despite challenging market conditions. The company successfully launched the Juicy Couture brand, receiving positive consumer feedback and strong initial sales. Investments in a new warehouse and manufacturing plant are expected to improve supply chain efficiencies and production capabilities. The company has expanded its store presence to 48 locations, including a significant rollout in Shopper Stop outlets. Brand Concepts Ltd (NSE:BCONCEPTS) is focusing on digital marketing, achieving 1.94 billion impressions for Juicy Couture's launch. Higher interest costs and depreciation from new investments have impacted profitability. Like-for-like (LFL) growth remains negative, particularly in distribution and department store channels. The company faces intense competition and heavy discounting from competitors, affecting pricing strategies. Institutional and government business margins are lower, impacting overall profitability. The company's retail expansion is limited in key markets like Bangalore and Hyderabad, affecting potential growth. Warning! GuruFocus has detected 5 Warning Signs with NSE:BCONCEPTS. Q: Are you seeing any traction on like-for-like (LFL) growth, considering last year was a struggle? A: LFL growth in e-commerce is positive, but distribution, including department stores, has been sluggish. However, LFL is better than last year, though still negative. Our Exclusive Brand Outlets (EBOs) were flattish, but average selling prices (ASPs) have been increasing, indicating better value growth than volume growth. - Abinav Kumar, Whole-time Director and CFO Q: Do you have a plan around return on capital employed (ROCE) and return on investment (ROI) for the company? A: Yes, we are focused on capital employed. For instance, when investing in the warehouse, we phased the investment to protect our ROCE and ROI. We aim to maintain a balance between growth and capital efficiency. - Abinav Kumar, Whole-time Director and CFO Q: How do you see the industry discounting trend resolving, given the increasing competition? A: The discounting trend is challenging, with some players leading the price war. However, we see a shift towards premium offerings across brands. We expect the situation to stabilize in 1-2 quarters as demand returns and brands focus on premium segments. - Abinav Kumar, Whole-time Director and CFO Q: What percentage of your revenues is from in-house manufactured goods, and how will this change post-merger? A: Currently, 70% of our backpacks are manufactured in-house, contributing about 10% to overall revenue. Post-merger, we expect 50% of luggage production to be in-house, which should improve margins over time. - Abinav Kumar, Whole-time Director and CFO Q: What is your strategy for expanding store locations, particularly in underrepresented areas like Bangalore and Hyderabad? A: We plan to open larger flagship stores and airport locations, focusing on revamping the brand experience. We aim to open 10-12 stores this year, with a focus on mall locations and pilot stores to refine our approach before broader expansion. - Abinav Kumar, Whole-time Director and CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
