Did some work on Arvind Fashions in the last few months.
From the subsidiary annual reports, one can have a better understanding of the brands held by Arvind. Thanks Yash for pointing me to them!
The summary:
-
US Polo is the largest brand, at 1000+ Cr. of sales.
-
Arrow, Tommy, Flying Machine are around the 500 Cr. mark.
-
Turnaround is definitely visible through the years, but the economics of individual brands still look horrible…
I also realised that subsidiary annual reports have royalty spend as a line item. Therefore, one can measure royalty spend against the topline, to arrive at a metric which benchmarks how lucrative the licensing deal is!
Calvin Klein and Tommy
Post FY20, these two got merged into one entity. It’s jointly owned by Arvind and PVH brands, Europe.
Sephora
Flying Machine
-
EBITDA margins, receivables and inventory turns generally look better over the years.
-
Sephora has the nicest licensing deal (rumoured to be sold to Reliance Retail…)
-
Flying Machine is the fastest growing brand (JV with Flipkart), but with limited data.
-
US Polo + other small brands still have losses of 280 Cr. on the books at the end of FY22.
-
Arrow is dicey to pinpoint as the subsidiary is only Arrow wholesale, and it’s likely that Arrow retail is blended into the US Polo numbers.
D: Invested, in top 5 positions, no recent transactions.
| Subscribe To Our Free Newsletter |
