Poor sales growth in Q3 FY24, of around 6.7 % given that store count increased 18 % from 672 to 795 at the start of the respective quarters. Management has blamed “covid bump” in the same quarter last year for the poor growth but there was no mention of any such pent up demand or one off benefit in the last year’s concall. Moreover, part of the festival demand last year was in Q2 whereas this year the entire festival demand was in Q3, so results should have been better. Most other consumption companies are yet to declare results, so not sure if this is a macro problem or a company specific one.
In the concall, most focus was on Fila and Footlocker, that’s what institutions are looking at. BIS implementation has been deferred for MSMEs. So, looks like it will apply mainly to imports. This impacts premium end / sports athleisure category where local will have benefit but make no difference in case of ordinary footwear. This again, will be good for Metro.
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