Looking at the investor presentation, following stood out to me:
While US sales remained resilient, it was driven by price rather than volume (full price, miminal discounts). How long can this continue ?
US & EU Imports are down by 22% and 16% respectively (YTD). And Indian apparel exports are declining as well (14% YoY).
Company was expecting Fed rate cuts, which haven’t happened – this will likely impact consumption in US, specially in apparels without discounts (which is how the industry made money in near term).
Looking at all thes numbers and commentaries – are we looking at a few subdued quarters unless export economy picks up ?
Disclaimer: Invested with a small tracking position, and biased.
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