Jockey India licensee posts 24% fall in Q1 profit on sluggish demand
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Page Industries, which licenses innerwear and loungewear brand Jockey International's products in India, reported a nearly 24% fall in first-quarter profit on Thursday, as softer demand weighed.
The company, which also licenses the Speedo swimwear brand in India, said its profit fell to 1.58 billion rupees ($19.09 million) for the quarter ended June 30 from 2.07 billion rupees a year earlier.
The Bengaluru-based company which also manufactures and distributes athleisure wear reported a 7.5% fall in its revenue from operations at 12.40 billion rupees.
However, the company's profit amplified by 102% sequentially on the back of a 31% sequential gain in its sales volume.
Its profit margins fell to 12.8% in the quarter from 15.4% last year but saw an improvement from the previous quarter's 8.1%.
"There has been a build-up of excess inventory impacting the overall ecosystem and resulting in unsustainable business practices," the company said.
"With on-line platforms becoming a preferred avenue for shopping, the e-commerce segment is poised for accelerated growth," it added.
Rival Trent on Wednesday beat its first-quarter revenue estimates, led by an increase in footfalls and store expansion.
Shares of Page Industries rose nearly 2% after the results.
($1 = 82.7840 Indian rupees)
