“The consumption slowdown that the discretionary category started to witness post festive last year continued during this quarter as well. In such a challenging environment, the business posted growth over last year driven by performance across our established businesses added by new-business additions that we made during the last year. It is important to note that amidst these continued challenges in the demand environment, our performance has been driven by rapid and agile responses to the changing market conditions, along with effective execution of our growth strategy through brand building, network expansion, category extensions and portfolio enhancement.”
-Jagdish Bajaj, CFO
Stock Data
| Ticker | ABFRL |
| Industry | Fashion |
| Exchange | NSE |
Share Price
| Last 5 Days | -4.1% |
| Last 1 Month | 5.2% |
| Last 6 Months | -2% |
Business Basics
Aditya Birla Fashion and Retail Limited (ABFRL) stands as a prominent force in the Indian fashion and retail industry. Since its establishment in 2007, ABFRL has cultivated an extensive and diversified brand portfolio that encompasses renowned labels such as Pantaloons, Van Heusen, Allen Solly, Peter England, and more. With a wide-reaching network of retail stores, both owned and franchised, the company has effectively connected with consumers across urban and semi-urban India, making fashion accessible to a broad demographic.
Recognizing the significance of e-commerce, ABFRL has strategically expanded its online presence, offering customers the convenience of shopping for their favorite brands online. While primarily focused on the Indian market, the company has ventured into international markets by exporting its products globally. Moreover, ABFRL is committed to innovation and sustainability, consistently exploring eco-friendly materials and manufacturing processes. With a customer-centric approach, strategic acquisitions, a strong financial performance, and a dedication to corporate social responsibility, ABFRL remains well-positioned for future growth in the ever-evolving fashion and retail industry.
Q1 FY24 Financial Performance
Aditya Birla Fashion & Retail Ltd reported Revenues for Q1FY24 of ₹3,256.35 Crores up from ₹2,905.11 Crore year on year, a rise of 11.17%. Consolidated Net Profit of -₹161.62 Crores from ₹94.44 Crores in the same quarter of the previous year. The Earnings per Share is -₹1.49, from ₹1.04 in the same quarter of the previous year.
To Read more about company’s earnings:
Segment Revenue
Aditya Birla Fashion and Retail Limited (ABFRL) operates with two key revenue segments:
Madura Fashion & Lifestyle: This segment encompasses a portfolio of premium and luxury fashion brands. Madura Fashion & Lifestyle owns and manages well-known labels such as Van Heusen, Allen Solly, Peter England, and Louis Philippe, among others. These brands cater to a discerning clientele and offer a wide range of clothing and lifestyle products, from formal wear to casual attire. The segment’s focus on premium fashion positions it in the upper echelons of India’s retail market.
Pantaloons: The Pantaloons segment primarily targets the mass market and offers affordable fashion solutions to a broader audience. It’s known for its diverse clothing collections, including men’s, women’s, and children’s apparel, as well as accessories. Pantaloons has a wide network of stores, making it accessible to consumers in urban and semi-urban areas across India. This segment’s strength lies in its ability to provide trendy and affordable clothing options.
By operating in these two distinct segments, ABFRL effectively covers a broad spectrum of the fashion and retail market in India, catering to the needs and preferences of both premium and mass-market consumers. This diversification allows the company to tap into different consumer demographics and capture a larger share of the fashion retail industry.
In a recent update, Aditya Birla Fashion and Retail Limited (ABFRL) shared its key highlights for the quarter, showcasing robust growth in both its retail and wholesale segments. Despite market challenges, the retail channel exhibited resilience with a 2% year-on-year growth. In contrast, the wholesale segment saw an impressive 20% growth year-on-year, driven by expansions in the trade and departmental store businesses.
Key Updates in Company’s Brand Portfolio
The company’s four lifestyle brands are strengthening their leadership positions in the market through sustained product innovations, category extensions, and strategic investments in marketing and brand building. These initiatives are complemented by ambitious forays into non-apparel categories, expanding their reach and influence in the industry. ABFRL’s youth Western fashion brands, including American Eagle and Forever 21, displayed remarkable growth. American Eagle recorded an impressive 49% revenue growth compared to the previous year, driven by a robust distribution network expansion and attractive product offerings. The brand expanded to 3 new stores, further solidifying its presence with 40 exclusive brand outlets and over 65 departmental store locations.
Forever 21, on the other hand, is focused on improving its operating key performance indicators and expanding its network through an asset-light approach, positioning it for future growth. ABFRL’s integration of Reebok has been promising, with a 43% growth in quarterly revenue compared to the previous year. This growth was fueled by an aggressive expansion strategy, adding 10 new stores during the quarter. Reebok also strengthened its collaboration with departmental stores and marketplace partnerships, indicating its potential to become a profitable addition to ABFRL’s lifestyle brand portfolio.