India's Trent posts five-fold jump in Q4 profit on more Zudio apparel stores
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Indian apparel retailer Trent reported a five-fold jump in quarterly profit on Monday, its third straight quarter of triple-digit profit growth, as it opened more of its lower-priced Zudio brand of stores.
The Tata Group-owned company reported its consolidated profit before exceptional items and tax rose to 3.01 billion rupees ($36.1 million) for the fourth quarter ended March 31, from 601.7 million rupees a year earlier.
It recorded a one-time gain of 5.76 billion rupees due to reassessed lease contracts resulting from store consolidation or closures, adjusting assets and liabilities accordingly.
The retailer overcame sluggish demand and restrained consumer spending by opening 86 Zudio stores, which sell everything from dresses to perfume at less than 999 rupees ($12), attracting young consumers looking to regularly refresh their wardrobes on a tight budget.
Trent also opened 12 of its mid-range Westside stores, boosting store counts under the Zudio and Westside brands to 545 and 232, respectively.
The company posted a 51% rise in revenue to 32.98 billion rupees, marking its 13th straight quarter of revenue growth. Its expenses rose 39.2%.
Peers Arvind Fashions and Aditya Birla Fashion Retail will report next month.
Shares of Trent rose 29.2% in the March quarter.
