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Arvind Fashions Ltd (AFL) on Thursday said 75 percent of its stores are operational now after the easing of lockdown relaxations, though footfalls and revenue remain well below pre-COVID levels.
According to a PTI report: Sharing an update on the impact of the pandemic on its business, the company said while in the short run there would be disruptions, it expects “the strength of its brands, coupled with launch of new relevant product and investments in digital and omnichannels will help it overcome the challenges and react to evolving situation faster”.
Post-lockdown, the company has been progressively reopening its stores following due regulatory guidelines and safety and hygiene standard operating procedures (SOPs), and ensuring appropriate social distancing norms, it said.
“Currently 75 percent of our stores are operational, though footfalls and revenue remain well below pre-COVID levels. In the meantime, the company has invested behind and scaled up its digital and omni capabilities and good traction is being achieved in this important channel,” AFL was quoted by PTI as saying.
The company has a network of 1,290 stores, while it is also present across approximately 10,000 multi-brand outlets with more than 3,700 points of sales in department stores across India.
AFL said it has put in place a “comprehensive cost management plan that covers significant reduction in costs during the lockdown period and until sales normalise. In addition, structural reductions have been effected in the cost structure that will have the impact of reducing company’s breakeven levels by 35 percent”.
Actions have also been initiated to conserve cash by cutting down capex, reducing inventory levels, controlling immediate buys and bringing a strategic flexibility in the buying process, it added.
On the outlook, AFL said as the market reopens post the lockdown, it is well-positioned to resume full operations at the earliest.
“With sharpened product portfolio suiting to customer requirements, entrenched distribution network along with capability build-up in analytics for demand planning and fulfilment as well as omnichannel, AFL is strongly placed to recover faster from the impact of ongoing pandemic,” it was quoted by PTI as saying.
Arvind Fashions Ltd on Thursday reported a consolidated net loss of Rs 208.12 crore for the quarter ended March 2020, impacted by COVID-19 outbreak and subsequent disruptions in the market. The company had reported a net profit of Rs 21.30 crore in January-March quarter a year ago, AFL said in a regulatory filing to the BSE.
Revenue from operations fell 39.22 percent to Rs 710.46 crore during the quarter under review as against Rs 1,168.96 crore in the corresponding quarter a year ago.
“During January and February, the company was on track to meet its internal plan. However, revenue was severely hit in March as COVID-19 impacted sales across the channels. This has adversely impacted the reported Q4 FY20 revenues and profitability,” AFL said in a post-earnings statement.
The company’s total expenses declined 22.98 percent to Rs 895.58 crore as against Rs 1,162.89 crore in Q4 of 2018-19.
For fiscal year 2019-20, the company reported a net loss of Rs 399.36 crore. It had posted a net profit of Rs 21.48 crore in the previous fiscal.
Its revenue from operations in FY20 declined 16.74 per cent to Rs 3,866.30 crore as compared with Rs 4,643.86 crore in 2018-19.
“Completion of key strategic steps during the year have lent fundamental strength to our business. While COVID has been an unprecedented event which has significantly impacted the entire retail industry, as a leading casual wear company with a portfolio of brands with leading market positions and key capabilities in digital and omnichannel, we expect to gain market share as business gets back to normal,”J Suresh, MD & CEO, AFL said in a statement.
AFL is country’s leading player in casual and denim segment and hosts a strong portfolio of fashion brands both international and indigenous which includes – US Polo Assn., Arrow, GAP, Tommy Hilfiger, Calvin Klein, Flying Machine and Sephora.
Future Lifestyle Fashions announced that L Catterton Asia, the Asian unit of the largest and most global consumer focused private equity firm in the world, will make a significant investment in Future Lifestyle Fashions.FLFL owns and markets about 30 fashion brands through exclusive brand outlets, department stores and multi brand outlets
Pepe Jeans has also signed Bollywood heartthrob Sidharth Malhotra as its first ever Indian brand ambassador. Malhotra is showcased in Pepe Jeans’s newest Spring Summer 18 campaign #MadeToCreate. The campaign is all about acting on your passion to create art and bring to life something remarkable that is driven by creative expression.
Pepe Jeans London, a forefront of international denim-led fashion brand, is aggressively looking at retail expansion plans across the country along with enhancing its Omnichannel experience.Pepe Jeans India manufactures a wide array of chic casual wear for men, women and kids
This exciting quarter saw the launch of its internationally developed ‘Red Concept’ stores in Kolkata and Delhi. These stores deliver distinctive stories via various elements – breath-taking visual merchandising, red and white focal highlight zones, a focal wall highlighting the premium collections and heritage history wall. Thus delivering a premium look andfeel keeping in line with the overall strategy of bringing swagger back to Bata. Bata also opened its first stand-alone Power store in Noida which was inaugurated by the global leadership team and Bollywood youth icon Diana Penty.
“Our entry in India represents a significant step in our company’s global strategy, and we are very pleased and excited to be part of the country’s growing retail market,” said Tadashi Yanai, Chairman, President and CEO of Fast Retailing Co., Ltd., the operator of the UNIQLO brand.
We created our positioning and brand awareness strategies in order to generate demand through which we’ve done via cross promotions and other affiliating partners. Our recent collaboration with well known fashion blogger and pioneer in the media world, Mariano Di Vaio is a sheer example to that. This has further aligned our brand globally with our core DNA of the brands vision and mission embedding the spirit of polo into everything we do.
Through focused and challenging discussions, this one-day seminar shall address pressing issues relevant to the organic textiles industry. It shall equip delegates with best practices and know how relating to the biggest opportunities – and challenges – help transforming their supply chains to achieve efficiency through sustainability.
“Our products have functionality by which I mean that 95 percent of our product range is wearable everyday however these products do not need to be boring. So how do we upgrade everyday lingerie into a product that is actually interesting, fashionable, stylish and aspirational in nature. And such kind of brand positioning is not available in India so far and that is what lead to the early traction that we had,” revealed Behal.
“The Luxury market in India gathers tremendous attention as a vast majority of the international brands has arrived or are relied upon to enter. Luxury retailers have understood that India is one of the world’s most energetic, diverse, and testing markets for brands who want to set sights in India,” she told IANS via an e-mail.
India has been inspiring the luxury and fashion industry for years and has been a source of inspiration for the rest of the world for decades.La Martina – a polo lifestyle company known for its apparel, technical equipment and accessories – started its India operations in 2014 with the launch of its maiden store in the capital’s most coveted luxury mall, DLF Emporio
Despite overseas plans, the domestic market will continue to be a major focus market for the Trent and it has already embarked upon a major expansion for its three retail chain brands, Westside, Star Bazaar and Zudio in the current fiscal and also over the next few years, Auld said.