The Q1 results for Ethos have a good glimpse of the future ahead. Keeping aside the reduction in promotor stake, few key aspects:
Healthy P&L metrics inspite of elections and heat waves
Luxury/ Premium as a trend gaining steam– The higher ASP watches compensated for volume drop and with the rest of the year ahead with wedding dates etc, subsequent quarters should be more exciting
Store openings intact– The company is guiding that it’ll try and fulfil the store opening targets. Anything upwards of 20 against targeted 25 should be a good hit rate
Second hand watches business– If there’s anyone right now who can crack this it is Ethos and the gains would be astonishing if this model is cracked
Healthy SSG– A double digit growth in retail is always welcome and indicates that possibly the company has a good Retail Business Development team and is not dependent on only new stores for growing business
Tie ups with brands and lifestyle store clicking– The management has been doing a lot of work in laying a strong business for future.
Holding from lower levels and biased. Have recently added more basis business understanding
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