Latest news with #Zudio
Fashion Network
08-05-2025
- Business
- Fashion Network
Trent to focus on new categories and non-metro expansion to fuel growth
Tata retail business Trent Limited expects to see revenue growth in the coming financial quarters after it saw its net profit drop by the highest amount since Covid-19 in the fourth quarter of the 2025 financial year. The business now plans to focus on new categories and non-metro expansion to fuel positive growth. Following a recent backend expansion of Trent's youth-focused apparel brand Zudio,the business expects strong revenue growth in the 2026 fiscal year, ET Bureau reported. As a value centred brand, Zudio has lower profits margins and relies more on higher sales volumes. The rising share of Zudio in Trent's overall revenue mix also contributed to its lower margins in the March quarter. "Trent's expansion hinged on a focus on Tier 2 and 3 cities," read a report by brokerage firm Elara Securities, ET Retail reported. From the 2025 financial year to the 2028 financial year, Elara Securities expects to see 17% yearly store count growth for Zudio and 8% for Westside. Trent is expected to look to new product categories for growth, including lab grown diamonds, a segment which is fast disrupting India's fine jewellery industry. The business is also expected to widen its beauty offering and launch new cosmetics products.
Business Mayor
06-05-2025
- Business
- Business Mayor
Trent on path to expand presence beyond metros, revival in SSSG will be crucial
Trent reported the steepest decline in net profit for the March quarter since the Covid period on account of the continued expansion of Zudio stores and lower same-store sales growth (SSSG). Margins contracted due to higher discounts and a rising share of low-margin Zudio business in the revenue mix. The company's store additions remained robust. The back-ended expansion of Zudio is likely to support revenue growth in the coming quarters. In addition, the company is expected to focus on new categories, including lab-grown diamonds and beauty products, which may keep the top line buoyant. Analysts have maintained a 'BUY' rating on the stock, projecting 25–26 per cent annual growth in revenue and net profit over FY25–27. Trent's revenue grew by 29 per cent year-on-year but fell by 10 per cent in the fourth quarter of FY25 from the previous quarter, reflecting sequential weakness after the end of the festive season. Net profit slipped 47 per cent in the March 2025 quarter year-on-year and by 26 per cent sequentially amid sustained store expansion. The company opened 13 Westside and 40 Zudio stores during the quarter. The company's effective cost management resulted in a decline in rent cost by 20 per cent year-on-year. Analysts stated that despite some pressure on gross margins due to Zudio's lower price positioning, the operating margin before depreciation and amortisation (EBITDA margin) is expected to remain stable at 16–17 per cent , supported by cost control. For the fiscal year 2025, the company's revenue and net profit jumped 40 per cent and 10 per cent year-on-year to Rs16,668 crore and Rs1,584.8 crore, respectively. A lower profit growth was due to a higher base last year on account of an exceptional item of Rs 576 crore with respect to the gain on reassessment of lease estimates. 'Trent's expansion hinged on a focus on tier II-III cities. It added presence in 64 new cities and towns,' stated Elara Securities in a report. The brokerage expects 17 per cent and 8 per cent annual growth in store count for Zudio and Westside between FY25 and FY28. The combined retail area for Zudio and Westside stores increased by 40 per cent to 9.5 million square feet in FY25. The company earned 6 per cent revenue from the online sales channel. Trent's SSSG has gradually moderated over the past two quarters reflecting slower demand. Motilal Oswal Financial Services mentioned in a report that Trent's SSSG slipped to a mid-single digit in March 2025 quarter from high-single digit in December 2024 quarter and double digit growth in September 2024 quarter. Analysts expect growth in FY26 to be aided by Zudio's back-ended store additions. A recovery in SSSG would be a crucial ingredient. Despite short-term challenges, analysts remain upbeat on Trent's structural growth prospects. Motilal Oswal values Trent at Rs 6,900 per share, and Elara has maintained a target price of Rs 8,300 compared with Monday's closing price of Rs 5,374 on the BSE.
Economic Times
30-04-2025
- Business
- Economic Times
One billion dollars Zudio revenue in FY25
Noel N Tata, chairman, Trent Mumbai: Tata-owned Trent said its mass-priced fashion brand Zudio crossed $1 billion in revenue in FY25, after more than doubling its store count in the past two revenue increased 27% to ₹4,291 crore with a 52% decrease in net profit at ₹212 crore during the March quarter. The EBIT margin for the quarter was 9.3%, 100 basis points (one percentage point) higher compared to a year ago. During the quarter, Trent opened 13 new Westside stores to take the tally to 248 stores and added 132 Zudio stores to have a count of 765 doors of the mass-priced brand. "Given the seasonality of the business, nature of the real estate market and our approach to inventory management, the full year performance is more representative with respect to revenues, operating profitability and network expansion vis-a-vis any individual quarter," said Noel N Tata, chairman, Trent. Trent said in the fashion portfolio, the like-for-like growth during the quarter was in the mid-single digits and in double digits in the entire 2024-25. For 2022-23, the retailer had reported a 37% year-on-year increase in revenue to ₹17,353 crore while net profit rose 4% to ₹1,534 crore. Its food and grocery retail format under Star brand saw a 17% growth in revenue to ₹857 crore with 2% same store sales growth. "We believe building density of our presence in key markets allows us proximity and the ability to service our customers readily. The market opportunity associated with building brands and a pure play direct-to-customer business like ours remains immense," said Tata, adding it is applying Trent's playbook in Star business and the contribution of its own brands is now trending over 72% of revenue compared to 69% a year ago.
&w=3840&q=100)
Business Standard
30-04-2025
- Business
- Business Standard
Trent shares drop 4% after Q4 earnings; results breakdown, analysis here
Shares of Tata Group-owned Trent Ltd. tumbled nearly 4 per cent on Wednesday after it reported a 54.8 per cent profit drop in the fourth quarter (January-March) of the financial year 2024-25 (Q4FY25) compared to the same period of FY24. The fashion and lifestyle retailer's stock fell as much as 3.64 per cent during the day to ₹5,195 per share, the biggest intraday loss since April 25 this year. The stock pared losses to trade 3.3 per cent lower at ₹5,212.5 apiece, compared to a 0.01 per cent advance in Nifty50 as of 9:32 AM. The company's counter snapped its two-day gaining streak on Wednesday and has risen over 15 per cent from its recent low of ₹4,488, which it hit early this month. The stock has fallen 27 per cent this year, compared to a 2.9 per cent advance in the benchmark Nifty50. The lender has a total market capitalisation of ₹1.84 trillion, according to BSE data. Trent Q4FY25 Results breakdown Trent's consolidated net profit declined 54.8 per cent in the fourth quarter (January–March) of the financial year 2024–25 compared to the same period last year, despite including ₹576 crore in gains from reassessment of lease term estimates. Its revenue from operations rose 27.9 per cent to ₹4,216.9 crore in Q4 compared to the same period last year, and its like-for-like growth was in mid-single digits in the quarter on a standalone basis. In FY25, like-for-like growth was in double digits on a standalone basis. Its profit before interest, tax and depreciation stood at ₹725.3 crore, down 37.7 per cent, in Q4. The company said that it operates over 1,000 large-box fashion stores. Trent management commentary In FY25, Trent built on the agenda of strongly growing their reach and becoming more accessible to customers, Noel N Tata, chairman at Trent, said in the release. "Given the seasonality of the business, nature of the real estate market, and our approach to inventory management, the full-year performance is more representative with respect to revenues, operating profitability, and network expansion vis-à-vis any individual quarter.' Tata added, 'Our fashion portfolio continues to be differentiated by disciplines and choices. In FY25, Zudio revenues exceeded a billion dollars. Both Westside and Zudio now have the scale and reach, and enjoy significant consumer awareness and love. The Indian consumer has evolved rapidly in recent years, and is seeking an aspirational product proposition, attractive pricing and, importantly, ready accessibility.' Brokerage reviews: Nuvama on Trent According to Nuvama, Trent's Ebit margin expanded by 100 basis points in the fourth quarter of FY25, despite mid-single-digit like-for-like (LFL) growth, which was weaker than the high-single-digit growth seen in the previous quarter and insufficient to drive operating leverage. The slowdown in LFL growth is likely due to multiple factors, including softening demand, cannibalisation from new stores in overlapping areas, increased competition, and base effects, it said. The brokerage also flagged the declining LFL growth in the Star portfolio as a concern that must be addressed for the format to scale meaningfully. Centrum Broking on Trent Centrum Broking noted that LFL growth in Trent's fashion portfolio was in the mid-single digits, compared to double-digit growth in the previous year, despite aggressive store expansion. The brokerage remains optimistic on Trent's multi-pronged growth strategy, especially for Zudio, driven by strong product offerings and an efficient supply chain. However, it flagged that lower LFL growth could weigh on sentiment and potentially slow future store additions. Centrum has retained its 'Add' rating with a target price of ₹6,245.
Business Upturn
30-04-2025
- Business
- Business Upturn
Trent share price: Morgan Stanley sees 15% upside despite PAT miss, notes margin resilience
By Arunika Jain Published on April 30, 2025, 08:33 IST Morgan Stanley has reiterated its Overweight call on Trent Ltd., setting a target price of ₹6,359 per share, indicating a potential upside of nearly 15% from the current market price of ₹5,510.00. The brokerage noted that Trent's Q4FY25 performance was a mixed bag, with mid-single-digit like-for-like (LFL) growth in the fashion segment and a more-than-expected gross margin compression, which may signal inventory write-offs. These factors contributed to a 17% miss on profit after tax, largely due to associate losses. Despite these concerns, Morgan Stanley highlighted a beat on EBITDA margins, suggesting improved operational efficiency and cost controls. The brokerage maintained confidence in the company's long-term retail growth story, backed by its brand positioning and scale-up of formats like Zudio and Westside. Trent shares may see movement in the near term as investors balance margin resilience against concerns on inventory and profitability. Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions. Arunika Jain, a graduate in Mass Communication, brings a fresh perspective to the world of journalism. Arunika has a passion for writing finance and corporate news at You can write to her at [email protected]
