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Growth moderates sharply

Trent released its 4QFY25 pre-quarter update.

* Trent’s standalone revenue (incl. GST) grew ~28% YoY (vs. our estimate and 3QFY25 growth of ~36% YoY) to INR43.3b, likely due to further moderation in SSSG (from a high single digit in 3Q).

* Trent’s annualized revenue per store in 4QFY25 was flat YoY at INR168m (vs. 8% in 3QFY25).

* Trent added 136 net stores (up 29% YoY) across its fashion formats in 4QFY25, though the bulk of the store additions were back-ended.

Store additions across formats:

* In Westside, Trent opened 13 stores and consolidated three stores during 4Q to reach 248 stores (up 7% YoY). We note that Trent has been opening bigger Westside stores in the past few quarters.

* In Zudio, Trent opened 132 stores and consolidated two stores during 4Q to reach 765 stores (up 40% YoY).

* Trent likely closed a net of four stores in other fashion formats in 4Q.

FY25 performance:

* Trent reported FY25 standalone revenue (incl. GST) of INR176b (up ~39% YoY vs. +55% YoY in FY24).

* Trent opened 232 net stores across its fashion formats to reach 1,043 stores (up 29% YoY) during FY25.

* In Westside, Trent opened 40 stores and consolidated 24 stores to achieve 16 net store additions in FY25.

* In Zudio, Trent opened 244 stores and consolidated 24 stores to achieve 220 net store additions in FY25.

* Trent likely closed four net stores in other fashion formats in FY25.

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