Campus Activewear Q4FY23 earning call
Ambition to be India’s leading sports and athleisure footwear brand. FY23 sales of 1450 crore – 800 crore from retail, 650 cr D2C with market share.
Sold 23.5 million pairs with Average selling price (ASP) of 632.
Working capital 134 days in FY23 up from 98 FY22, management link this partially to higher front loading of inventory due to new BIS inventory norms expected july 2023.
K-shape recovery observed during post pandemic period between Tier-1 cities and Tier-2/3 urban/rural areas. This has exposed a portfolio gap company has on lower price points, plans to introduce more products in 699-999 range.
Company has 425-430 distributers now, which is a very decent base to get good growth over the next one or two years. Strategy is not to increase distributer number but to increase wallet share and sales at every touch point.
55% revenue from north and central india, 20% west, 15% from east and 10% from south.
Historically maintained 36-38% gross margin and 18-20% EBITDA margin, expect to maintain/improve this over long term.
Current capacity sufficient to service growth expectation for next 12-18 months. No Capex plans for FY24.
BIS norms coming this year will boost shift from unorganized to organized due to quality standardization across value chain.
Overall Company has suffered a bit on growth and margin front last year due to sluggish recovery in Tier-2/3 & rural markets, premium market remain strong. Company is taking measures to adress this with portfolio additions like challenger.
Disclaimer- Not invested, monitoring. This is not a stock recommendation. Please do your due diligence before investing.
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