Metro Brands – marketing footwear

Metro Brand Concall snippets:

• GM in the range of 55-57% due to RM cost and end of season sale

• Growth from > 3000 above category is high pent-up party is not over yet from premium consumer-Nissan Joseph in Q2FY23 Concall

• E- commerce grew by 50% YOY in H1FY23

• Total stores 37 net addition in H1FY23

• Anticipating healthy demand due to wedding season

• Cravatex acquisition for S&A will fuel growth in FILA and Proline

• Revenue contribution-Q1-25%, Q2-22-23%, Q3-27-28%,Q4-25%

• GM impated due to end of season sale Q2, EOSS has impact on Q2 and Q4 only

• Pre-covid H1FY20 Sale 60% and Q2FY20 Sale 70% (Standalone)

• Try to open crocs shops before moonson season as it happened this quarter too

• Other expenses high bcoz of salary hike to retain talent and due to FILA Acquisiton also

• Marketing cost is back from last few months (check Instagram page of MBL and Crocs they have partnered with ranvijay and varun sood famous personailites of Roadies and with diljit dosanjh also)

• Pentup demand was not there in all segment( You can’t buy 3 shoes bcoz you have not brought in last 3 years- CEO Nissan Jospeh) real demand is more now

• Fila is under penetrated high opportunity in athleisure. In sept 2012 there is one news that Fila had extended local licence with Cravatex for 30 years and again same news to add 60 stores which has not done till yet hence MG is not walking the talk

• ASP increase 5-7% due to inflation, We’re not a player of lower segment so can’t say for GST impact but we intend to become affordable premium player

• 260 Stores by FY25 but fluctuation may come in this store count probably more stores will add in this as it doesn’t includes FILA, Ecco’s. FILA store has more opportunity

• Good opportunity in athletic apparel and athelisure but now don’t want to combine their operation with metro, mochi or walkway stores. This market is even more bigger than footwear market MBL is assembling the team for this market

• FILA has net 20-30 EBO’s(Franchise) but MBL want to rationalize them into COCO Model. FILA is more hanging fruit type opportunityand they are evaluating more oppo like this

• 200Cr spent for Cravatex acqusition which includes all brand but for a revenue of 150 crore as FY22 out of which distribution is in the ratio of 50:50 or 60:40 more or less. FILA operation will start from internal accruals only

• Filtflop is seeing good growth in EBO and metro and mochi store.

• Discounted sale contribution in Q2 is 8% and H1 is up 5%

• No plan to launch own brand in S&A

• FILA Average selling price probably in around 3000-5000

• Cravatex acqusition is for all brand but now they have decided for FILA and Proline operation

• Licensing fees for FILA is market competitive